“We view the U.S. Dollar Index and UUP as tracing an impulsive, five-wave move up from the 2011 low. To keep that scenario alive, we really would not want to see price go much lower than it has done in recent weeks. Ideally it would build on the upward move of the past two weeks without looking back. The first near-term target in the bullish view would be the upper boundary of the channel, but that resistance should break eventually,” according to See It Market.

Traders that are bold enough to remain bearish on the buck can consider the PowerShares DB US Dollar Index Bearish Fund (NYSEArca: udn), which takes the inverse or short performance of the U.S. dollar against the same basket of six major currencies as UUP, is another obvious beneficiary of the dollar’s swoon.

If another dollar rally is legitimized, it could see the currency soar for an extended period.

“If the impulsive scenario keeps working, then targets for later in 2016 or 2017 should include the area near 26.90 and possibly the area near 27.70. Beyond that point, we would expect another lengthy period of consolidation before we will know whether the Dollar’s upward trend can continue into the next decade,” adds See It Market.

For more information on Currency ETFs, visit our Currency-Hedged category.

PowerShares DB U.S. Dollar Index Bullish Fund