(UDN) Invesco DB US Dollar Index - Ratings and Ratios

The Invesco DB US Dollar Index Bearish Fund (NYSE ARCA: UDN) is designed to provide inverse exposure to the US Dollar Index (USDX®) through short positions in DX Contracts. The fund tracks the DB US Dollar Index Bearish Fund Index, which reflects the performance of short positions in DX Contracts expiring in March, June, September, and December. These contracts are linked to six index currencies: Euro, Japanese Yen, British Pound, Canadian Dollar, Swedish Krona, and Swiss Franc. The funds strategy involves establishing short positions in these contracts to capitalize on potential declines in the value of the US dollar relative to the basket of currencies.

The funds technical profile indicates moderate trading activity, with an average 20-day volume of 122,883 shares. The last price of $17.51 reflects current market sentiment, while the SMA 20 ($17.05), SMA 50 ($16.87), and SMA 200 ($17.25) suggest a near-term downtrend but a longer-term sideways trend. The ATR of 0.11 signals relatively low volatility. With AUM of $51.87M, the fund is a niche product tailored for investors seeking bearish exposure to the US dollar.

3-month forecast: Based on the technical and fundamental data, UDN is expected to trade in a narrow range, with potential downside limited by the SMA 200 support at $17.25. The low ATR of 0.11 suggests muted price movements, with resistance at the SMA 50 level of $16.87. If broader macroeconomic conditions weaken the US dollar, the fund could see incremental upside, but overall movement is likely to remain subdued.