Chart Of The Day - UUP, GLD

 Let's follow up on the UUP GLD battle 

UUP

The 92-96 sell, 6 days ago, has so far marked the short term top for UUP. Today a 16-20 not xxed buy has been generated. If this buy marks a low the next signal might be a 92-96 buy, either in the form of a double buy or a true buy. Such a signal would be a start of a new bull run for the dollar, IMHO.  On the other hand, if a 35-35 sell is going to be the next signal, that would significantly reduce the chances of a dollar rally.

The daily chart still favours the dollar bullish outcome because the price is above all the medium term moving averages. 

GLD

I am adding the GLD chart just to illustrate how potent the bullish outcome for the dollar might be. 

The GLD is on a verge of buying the 35-39 echo while on the 92-96 buy. Both buys are xxed, the 16-20 echo poses as the resistance and on the daily chart all moving averages are also above. After 5 consecutive days up and a total lack of life in gold stocks, this seems like a very strong resistance. If gold cannot move away from this level there are two very bearish setups that are in play, either a double sell or triple sell depending on the trajectory that will develop in the next couple of weeks. This chart screams danger. The only way out of it is straight up to buy 218-222 echo.