UUP Update…The Dollar Channel

Yesterday I posted this daily chart for the UUP suggesting that it could very well be building out a new uptrend channel with the current price action trading at the top rail where it has been chopping out the small blue rising wedge. Today we are getting some follow through to the downside.

Below is the weekly chart which shows how the new uptrend channel could still be bullish over the longer term as long as the price action can stay above the bottom rail. Today the PM complex is definitely trading inversely to the US dollar’s decline.