The greenback may get even greener.
The U.S. dollar index just completed its ninth straight week of gains. The index—which measures the dollar against a basket of other currencies—is in the midst of its longest streak of weekly advances since 1997. In the last two months, the index is up 4.8 percent, an unheard of move in the world of currency.
And according to one highly regarded technician, the gains could just be starting.
"A lot of investors have forgotten that in a bull market, you tend to see your economy strengthen, the dollar strengthen and equities go with it," said Craig Johnson, senior technical analyst at Piper Jaffray. "We have just reversed a five-year downtrend. I don't think that's insignificant by any means."
Driving the dollar strength is an influx of capital from Europe, where economic conditions are more uncertain, said Johnson. "It's going to continue to go higher," he said. "This trend reversal in the dollar is only going to continue to get stronger."
Gina Sanchez, founder of Chantico Global, agrees with Johnson. She believes monetary policy differences between the European Central Bank and the Federal Reserve are the key reason. While the ECB is trying to kick-start Europe's economy, the Fed is expected to end its quantitative easing and she sees a potential rate increase sometime next year.
"We're looking at a situation where the U.S. is preparing to begin the process of a hiking cycle," said Sanchez, a CNBC contributor. She sees hawks such as Philadelphia Fed President Charles Plosser and Dallas Fed president Richard Fisher gaining a bit more sway, potentially leading to a rate increase as early as March, if not by June. Of course, this week's crucial Fed meeting could provide a big catalyst for currency traders, but even if the Fed comes out with dovish comments, investors still perceive it to be exiting its stimulus programs, while other central banks are just entering theirs. "That is not happening in Europe. It's not happening in Japan. And we will continue to diverge in terms of policy paths and that's going to drive capital into the dollar."
To see the full discussion on the U.S. dollar index, with Johnson on the technicals and Sanchez on the fundamentals, watch the above video.