Watching UUP (US Dollar) On Uptrend Support, 50DMA and Treasuries

Something to watch going forward will be the US Dollar ETF (UUP) or US Dollar Index Future (as well as currency pairs).  I like watching UUP as a proxy for some reason. It's sitting on uptrend support when measured from the December 2009 low, before the Eurozone crisis hit and FXE (Euro ETF) lost 20%. We'll see if the USDX continues to rally or breaks down, and why. The 50 day moving average could act as resistance going forward. It's still above the 200DMA. I'm also watching Treasury bond yields and IEF/TLT. Some believe the deflation whale could send yields even lower from here. However, be careful of the bond vigilantes when Treasury yields break their uptrend line (see what Harvard's Niall Ferguson had to say). Below are links, the UUP chart and Mish Shedlock on Tech Ticker today.

Treasury 10-Year Note Yield May Move Higher, FTN Says: Technical Analysis - Bloomberg
Treasury 10-Year Notes Head for Biggest Weekly Drop in 3 Month - Bloomberg
Hyzy Says Treasury Yields Are `Screaming Deflation': Video - Bloomberg Video @ Washington Post
Recent post on 7/2: UUP/FXE: US Dollar Index, Euro, UUP/FXE Ratio -8.3% in June ($XEU, $USD)

Mish Shedlock was on Tech Ticker today saying the Treasury bull run was not over (and stocks could break the March 2009 lows). He likes gold on pullbacks.


UUP (PowerShares DB US Dollar Index Bullish Fund) -