Dollar Gains Momentum, PMO BUY Signal Triggered


Yesterday's breakout on UUP was impressive and although the Dollar pulled back slightly today, it didn't matter to the Price Momentum Oscillator (PMO) as it crossed its signal line and triggered a BUY signal.

While studying the OHLC chart for UUP, I realized if I looked at the closing prices only, there is a clear ascending triangle and yesterday it executed with the breakout above overhead resistance. Today's pullback didn't sacrifice that breakout. If we did a measurement, the minimum upside potential target is $25.70.

Interestingly, when you look at the weekly chart, you can see that $25.75 is one of the next areas of overhead resistance, so that calculation of $25.70 is very close. Notice that the weekly PMO is still rising. It has started to decelerate somewhat, but that makes sense given the trading range of the last 4 or 5 weeks. 

Conclusion: I'm bullish on the Dollar. I would look for a move to challenge overhead resistance at the 2010 top just above $25.75.

Technical Analysis is a windsock, not a crystal ball.

Happy Charting!
- Erin

Helpful DecisionPoint Links:

Erin's PMO Scan

DecisionPoint Shared ChartList and DecisionPoint Chart Gallery

Trend Models

Price Momentum Oscillator (PMO)

On Balance Volume

Swenlin Trading Oscillators (STO-B and STO-V)


SCTR Ranking

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Erin Swenlin
About the author: is a co-founder of the website along with her father, Carl Swenlin. She launched the DecisionPoint daily blog in 2009 alongside Carl and now serves as a consulting technical analyst and blog contributor at Erin is an active Member of the CMT Association. She holds a Master's degree in Information Resource Management from the Air Force Institute of Technology as well as a Bachelor's degree in Mathematics from the University of Southern California. Learn More
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