The Dollar has been plugging along quietly in a gently rising trend channel, while the Price Momentum Oscillator (PMO) has moved right along with it. A little over a week ago, the PMO crossed below its signal line and logged a PMO SELL signal. Today's rally saw an intraday high that hasn't been reached since early 2017, so it wasn't a surprise to see the PMO accelerate above its signal line for a new BUY signal.
I'm liking this BUY signal. The PMO, although logging a recent SELL signal, is trending higher. Peaks have been steadily increasing and bottoms are also rising. This last PMO bottom came close to going below its previous, but ultimately it wound up higher. Hard to argue with that beautiful rising trend channel alongside healthy SCTR and OBV readings.
The intermediate-term picture is also bullish. The PMO is rising nicely and isn't overbought. I'm looking for UUP to reach $26.75 next year, if not before.
Technical Analysis is a windsock, not a crystal ball.
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