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Day Trading Morning Prep Gold, Crude Oil, Dollar Index, Euro, E-mini Russell Futures
9:00 Crude Oil OPEN
Looking at the news today we have Contract Rollover on markets such as the Dollar Index, E-minis, Bonds, and Currency futures such as the Euro, Pound, Aussie, Yen.
We trade a lot of crude oil and gold futures, and these are NOT rolling forward today. For more info on those contracts you can search the blog.
We have 830am Jobs news like we always have on Thrsday morning, and we also have a late day news event from the Treasury that will most likely cause some traders to sit on hands late this morning. Look for the morning to slow down a little early ahead of this news.
Lets take a look at the markets we’re watching today.
The upward move on the dollar continues today after stalling at the overhead resistance level of 77.000 as we expected. Now the dollar is starting to convince people it has some strength pushing through the big round number.
We always want to remember the Dollar Index Futures Correlation when watching this market. with a rising dollar im looking for short trades as the higher percentage trades today.
Crude Oil futures are on the move this morning. With the dollar rising this pressure for crude to drop has made us tumble off the highs.
I can see three things to watch on this chart…
- Price Channel in Yellow trend lines
- Trading Range below us
- Previous HOD and LOD
The first thing I see is this massive price channel that has formed with the swing low from tuesday morning. This gives me a transitional area around 103.00.
We want to buy the lows of this price channel first, but at the same time im also watching to see if we will trade below the channel into the range below us from 102.83 down to 100.00.
Lastly, im also looking at the previous trading range from tuesday’s lows of 103.35 up to 105.92 the highs from wednesday.
If price holds the lows of this price channel we will head back up into the range from earlier this week, testing the 104.0 level easily.
If we break the lows of this channel, this will further confirm our short bias with the dollar rising and we will expect price to drop all the way to the lows of 100.0, which is an easy target for the short sellers.
