July 18, 2012
- in Uncategorized by schooloftrade
Dollar Index and Crude Oil Technical Analysis
830am EST
We begin our day with areview of the heat map, which tells us the dollar index is rising, with all of
our favorite futures moving lower. The dollar index is
trading at a positive 0.2% which is ALMOST where we need it to get the strong dollar
index correlation. We also know that a
rising dollar index will produce falling prices on Crude Oil, euro, E-Mini-Russell,
and gold futures. So as the dollar index
rises we are selling short using 2-step reversals and wave-patterns.
The dollar index is
trading once again at the highs of the price wedge with proven resistance that
has spoiled the fun for the buyers trying to violate the ‘B’ point of this
bearish AB=CD Pattern. We now have a double-top which will provide
us with additional support below us. We are
trading inside the range from yesterday, so this tells us to expect sideways
ranges and range-bound trading on the dollar index.
trading once again at the highs of the price wedge with proven resistance that
has spoiled the fun for the buyers trying to violate the ‘B’ point of this
bearish AB=CD Pattern. We now have a double-top which will provide
us with additional support below us. We are
trading inside the range from yesterday, so this tells us to expect sideways
ranges and range-bound trading on the dollar index.
CrudeOil trading inside the range from yesterday, making this a potentially range-bound day
which we can buy the lows and sell the highs of the trading range we are
within. Once we break out of this range
we are reading tape and looking for the fake-out breakout due to contract
rollover and the lower volume that comes with it. We can see the bullish price channel, the new
trend line defines another price wedge, and the trigger-zone resistance overhead.
