By Sellputs
March 23 2010 Update: UUP currently is trading at 23.75
The USD gained in trading today on renewed chatter the FOMC is going to change its "language" on its current near 0% rate stance. The chart on the left again highlights on a weekly chart of the UUP the oversold condition and the massive capitulation volume coming off support.
WE have not seen trading like this months now, markets are "loosening", volatility is rising. Inflection points in the market which gain wide market media attention and grabbing on the retail crowds attention could be enough to set the wheels in motion for the UUP to break through its clear downtrend.
This breakout could fail and we might trade back down to support(black line). With formations like this the breakout usually happened before the time horizon meets the apex of the triangle. Bottom line, the greater the focus and rumor/speculation rates may be raised the more money will pour in to vehicles long the dollar.
