U.S. Dollar Double Bottom Holds

The Dollar is holding onto a key double bottom from November 2010. The master level on the PowerShares DB US Dollar Index Bullish (NYSE:UUP) is $21.90. This level was tagged on Friday and retested today. Since the retest, the Dollar has inched off the lows and actually moved to the positive side. This double bottom should be very solid support in the short term.  As the Dollar has firmed up, gold, silver and oil have started to pull back. The SPDR Gold Trust (NYSE:GLD) hit a high of $140.61 today but is now trading at $139.88, +0.53 (+0.38%), the iShares Silver Trust (NYSE:SLV) hit a high of $35.78 but is now trading at $35.25, +0.56 (+1.61%) and the United States Oil Fund LP (NYSE:USO) traded as high as  $42.79 but is currently sitting at $42.51, +0.18 (+0.43%).

The markets are hovering around the lows of the day today as the markets seem to be worrying more about loss of stimulus from the Federal Reserve more than the Middle East unrest. This is a dramatic shift from last week and must be watched very closely.

About Gareth Soloway 168 Articles

Affiliation: InTheMoneyStocks.com

Gareth Soloway has been an avid swing and day trader since his days at Binghamton University where he studied Economics. After college, Gareth quickly excelled as a financial advisor, helping clients get their financial houses in order. While helping others gain financial independence, he continued to study the day trading and swing trading world, developing a unique market philosophy and proprietary methods. Following his work in the financial sector, Gareth went on to trade alongside professional traders. Unable to tolerate the hype of Wall Street any longer and having an amazing ability to profit using his developed techniques, Gareth Soloway decided to partner with his friend and colleague, Nicholas Santiago to form InTheMoneyStocks.com. Chief Market Strategist Gareth Soloway serves as the president and CFO of InTheMoneyStocks.Com.

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