The dollar remains an issue for commodities ETFs, particularly amid intensifying speculation that the Federal Reserve could raise interest rates later this month.
Looking at the UUP chart below, technical analysts may also argue that the greenback looks oversold. UUP’s relative strength index, a technical momentum indicator, was showing a 27.95 reading, an indication that that the asset may be oversold and likely undervalued.
“Looking at the daily chart for July Cotton, we notice prices trading near 1-month highs, as the market has been in a general uptrend since recent lows were made back in late February. Prices are above both the 20- and 200-day moving averages, and the 14-day RSI is rather strong, with a current reading of 60.17,” adds OptionsExpress.
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iPath Dow Jones-UBS Cotton Subindex Total Return ETN
