Is The Dollar "Rally" For Real?

The ETF Professor finds the prospect of legitimate dollar strength, at least in the near-term, to be somewhat dubious. That said, it's hard to ignore what's going with the PowerShares DB US Dollar Index Bullish ETF (NYSE: UUP). UUP has outperformed the CurrencyShares Euro Trust (NYSE: FXE) over the past five days and volume in UUP has been on the upswing, perhaps lending some legitimacy to the rally.

In fact, UUP traded more than triple its daily average on Wednesday. Year-to-date the ETF is down almost 8%, but if you're bullish on the dollar, this is the ETF to be bullish on.

In addition, UUP has actually held above its 20-day moving average over the past couple of days and that area has provided significant resistance point in the past. If UUP can hold above that level rather than failing there again, UUP could move higher.