For investors seeking momentum, WisdomTree Bloomberg U.S. Dollar Bullish ETF (USDU Quick QuoteUSDU - Free Report) is probably on the radar. The fund just hit a 52-week high and has risen 8.59% from its 52-week low price of $25.14/share.

But are there more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook to get a better idea of where it might head:

USDU in Focus

It is an active fund and offers investors a convenient way to gain exposure to the U.S. dollar against a basket of foreign currencies. The product charges 50 bps in annual fees and has a dividend yield of 3.63% (See: All Currency ETFs).

Why the Move?

The U.S. dollar has strengthened, supported by growing expectations of further Fed rate hikes following a stronger-than-expected U.S. jobs report. The value of the greenback is closely related to the Fed’s monetary policy, as its value moves inversely with interest rate adjustments by the Fed. Therefore, expectations for a more hawkish Fed stance could provide further support to the dollar.

According to TradingView, the U.S. Dollar Index (DXY) has gained about 0.1% over the past five days. The index has risen 2.03% over the past three months and 3.66% year to date.

More Gains Ahead?

USDU might continue its strong performance in the near term, with a positive weighted alpha of 3.18 (as per Barchart.com), which gives cues of a further rally.