By Tim Knight
Back on May 3rd, I did a Slope Plus post suggesting going long the US dollar. As I phrased it at the time: “The Yen and Euro have been very strong in recent months. I believe this is about to turn, and thus I am banking on a strengthening dollar. There are plenty of ways to play this (short the Euro, short the Yen, etc.) but I’m going to use the lame-o, thinly-traded UUP.”
Well, let’s take a fresh look at the charts. Shorting the Yen has gone pretty well, and there doesn’t seem to be much in the way of support, so this probably is a good “hold”:
The Euro has a little to go before its lower trendline, but I’ve got to say, it’s looking pretty close to being done for now.
As for the dollar itself, I was pleased that my post went up literally the day (if not the hour) of the perfect time for a long entry. With tightened stops, it’s a virtually assured profit. I guess it’s still a pretty good long position, until and unless it tags that upper trendline, but the strength of the dollar might diminish given, as shown above, that the Euro might be nearing some strength itself soon.
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