UUP (PowerShares DB USD Index) In A Wedge

UUP has been consolidating in a wedge pattern (from 23 May high/04 May 2011). With the potential bullish RSI divergence forming from the 04 May to 17 August 2011 lows on the daily chart, there is scope for bulls to re-open the recent 2-week range resistance at 21.16 (Resistance 1). A break above would extend gains towards 21.41 (Resistance 2), near 61.8% retracement of 21.74(12 July)/20.87 (17 Aug), then 21.61 (Resistance 3) near the wedge upper bounds. However, a break below 20.90 near the wedge support would initiate the next down leg towards the Fibonacci projections at 20.66 (equality target x 21.41/20.87 from 21.16) (Support 1) then 20.47 (1.382x 21.41/20.87 from 21.16) (Support 2) ahead of 20.35 (1.618x 21.41/20.87 from 21.16) (Support 3).

Trading Indication (Short term - Intraday):

Buy at 21.00 and lower;
Target at 21.41 and higher; Stop Loss at 20.88/85 (<0.71%)
Long-term: Possibly sell higher