Is the Dollar Bullish ETF (UUP): On The Verge Of a Break-Out?

Despite hints by the Federal Reserve yesterday that they will not be raising interest rates in the near future, the US Dollar is displaying strength on concerns over a global economic slow down and easing inflationary concerns on the back of falling commodity prices such as oil and gold. The US Dollar has reached seven-week highs against the Euro and Yen today thanks to a widespread correction in commodity prices and concerns over slowing economic growth in Europe which may put an end to the European Cantral Bank's hawkish stance on rates. Investors who are bullish on the US Dollar may consider investing in the PowerShares US Dollar Bullish ETF (NYSE: UUP) if it can break through multi-month resistance at the $23 per share level where it currently trades. UUP provides investors a simple way to gain exposure to long futures contracts against the Euro, Japanese Yen, British Pound, Canadian Dollar, Swedish Krona, and Swiss Franc. PowerShares also offers a bearish version of of this ETF under ticker (NYSE: UDN), which has attracted much less net assets ($76.5 million) versus UUP ($571 million).

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