June 8, 2011 (FinancialWire) (By Frank Kollar)
Shares of the ETF Powershares Double US Dollar Index (NYSE: UUP) are nearing their correction lows at just below $21.00.
UUP rallied in May but upon reaching its long term declining trend resistance line, as well as several short term resistance levels, UUP reversed and is now nearing its early May low.
This low, near $20.80 a share, should again offer strong support and possibly a profit taking bounce. But should it be surpassed to the downside, UUP could reach considerably lower lows.
A break of support could see UUP decline to $20.56 in the short term, and as low as $20.20 before strong support is reached.
The Fibtimer.com (http://www.fibtimer.com) ETF Timing Strategy does not have a position in the Powershares Double US Dollar Index ETF.