Dollar index day trading strategy

The dollar index giving us big clues this morning on the 89
range chart.  We can see the bear price
channel, the bear price wedge, and the AB=CD pattern.  We can also see the big inverted hammer
candlesticks at the lows of the price wedge which tell us the sellers TRIED but
they failed, and this clue will help us make educated decisions if price moves
to a new higher-highs.

We can tell two things from this clue;  first, we know this area is a battleground
for buyers and sellers competing for control, so expect it to be a little
sloppy.  Second, if we make a new higher-highs
we can really expect price to move quickly as the inverted hammer pattern tells
us the sellers have failed and the buyers are looking to take control.

We apply this clue to our day trading strategy this morning
by identifying that if the dollar index moves higher we will sell retracements on
the markets we trade.

The faster 13 range chart on the dollar index shows us the MAJOR
bear price channel, the Inside Day below the PHOD and above the PLOD, price
wedge structure, the double-top and double-bottom and the short term bull price
channel.  Lots of clues on this chart,
what do they mean?  How can we use them?

The most important things are the short-term-trend (if any)
and the support and resistance levels above and below where the dollar index is
likely to react by pushing through or failing and reversing.  As price rises higher we have overhead resistance
at the price channel and the trigger-zone with the final resistance at 79.280
before we find any open space.  If price
drops lower this morning we have the bull price channel lows which are expected
to be VERY strong support, the PLOD which will be a sloppy area to deal with as
support and then the double-top support at 78.765 as the final level of support
between the sellers and buyers being in control.