I can't help but notice the continual "lower highs" on the MACD of the UUP chart, showing a slowing of upward momentum as it diverges from the ETF's price. Also, the RSI had one of its most overbought readings recently as it shot outside of the top Bollinger Band and now is reversing.

Additionally, UUP buyers have gotten over-zealous relative to the index that it tracks ($USD). Historically, when this disparity happens, a trend change is nearing. In this case, it would be a change to the downside, for both $USD and UUP. UUP would just likely get slammed more as it's seemed to have "overshot" what it should have.

Comments (2)
No. 1-2
Sean Hyman
Sean Hyman

Editor

The RSI on the weekly chart of $USD is steadily declining too while $USD has treaded water sideways and hasn't come anywhere near its former highs.

Sean Hyman
Sean Hyman

Editor

And of course, the euro has the exact opposite/inverse situation.