Day trading strategy for dollar index

The dollar index trading in a
wide price wedge this morning all the way at the highs of the range just below
the PHOD.  We consider this to be a
buyers failure above the PHOD and we call it now an ‘inside trading day’ which
means that price should come down lower after those sellers took control at the
highs.  We are going to use the dollar
index correlation to make educated decisions with the markets we trade
today.  As the dollar index falls off
these highs we will see buying opportunities on other markets.

With that said, news out Europe overnight
has made the market sentiment bearish, so the idea of rising prices on other
markets, and a falling dollar index may be a little out of the possibilities
today however we need to be prepared for everything.  We know the dollar index can move three
possible ways today;  sideways, higher,
or lower.  If we rise higher we run into resistance,
so that’s not that friendly, and if we trade sideways we’re on top of the PHOD and
trend line and we know this is going to be sloppy today.  If price falls off these highs then we have a
BIG wide open space below us with lots of opportunity for us to profit.