The U.S. Dollar Index gained $1.63 for the week closing at $86.76. While the dollar remains near the $87.00 - $87.50 resistance level it is starting to build a small base and remains strong on the charts. The rally in the dollar that began in late November 2009 is now is now 27 weeks long. There will be resistance every point higher from here for the dollar with the next major weekly resistance area around the $90.00 level. Simply put when the dollar rises the Euro currency CurrencyShares Euro Trust (NYSE:FXE) declines and the markets deflate. The opposite is true when the dollar declines the markets inflate and trade higher. This chart PowerShares DB US Dollar Index Bullish (NYSE:UUP) is one of the most important charts in the market right now as the movement in the dollar dictates every move in the stock indexes.
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