U.S. Dollar Index breaks 200-day moving average

The dollar strengthened versus the euro and yen today, which helped the dollar index push through the 200-day moving average. Before that, the weaker euro was mostly supporting the index and the yen was a headwind.

The PowerShares DB USD Bearish Fund (UDN) broke below its 200-day, but UUP still has a way to go to break through its 200-day moving average on the upside. This move in the USD has also been "quiet", unlike the December move, with not a lot of media coverage or money flows into UUP. That suggests that it may reverse easily, or it may have much farther to go if money moves from the sidelines or shorts are forced to cover.

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