U.S. Dollar Index Bullish Fund takes a drop

By Julian Yosovitch April 2, 2015 • Reprints http://www.futuresmag.com/2015/04/02/us-dollar-index-bullish-fund-takes-drop#.VR1YVFxtyl4.twitter

The U.S. Dollar Index Bullish Fund (UUP) has taken a drop from $ 26.50 to $25.45, and from there the possible recovery puts the index within an important resistance at a 61.8% Fibonacci move of the entire initial selloff.

We believe that as long as the $26.10 level is not surpassed the index will remain vulnerable and resume bearish movements  toward lower zones back down to $ 25.60 and then $25.45.

If that low occurs it will confirm the market will continue its adjustment toward lower levels pointing back to  $25.00-24.80 and more depressed values.

The UUP must break above $26.10 to postpone any further cut and with such a technical success, any weakness will be postponed and we will expect additional upside toward the area of previous highs at $26.30, with $26.50 as the major short-term resistance    for the UUP.