Dollar index Day trading strategy 730am EST review

Our day trading strategy this morning includes multiple
markets and multiple timeframes.  We use
the dollar index correlation to help us find the short term trend, or lack-of
trend, along with the major turning points in the market which may cause price
reversals.

This morning we can see the dollar index has held its
support in the trigger-zone and now is rising higher.  One thing that I notice immediately is that
we are almost above ALL the major resistance that’s been holding down this dollar
index price.  If we can get price above
79.595 we look great for clean space to rise to 80.240.  a rising dollar index will mean falling
prices on the markets we trade so keep this in mind early next week, possibly
later this morning. 

Dollar index major resistance is 79.465, the trigger-zone from
80.245 -78.120 so that will be the hardest level to break, let’s keep that in
mind this morning as the dollar index tries to rise and may stall at this
resistance.  The 89-range chart on the dollar
index shows me the most important support and resistance levels but I need to
know the short-term-trend and I will use a faster timeframe for that.

The 13 range chart of the dollar index shows us some big
clues.  We can see the major resistance
at 79.465 is directly overhead so we know this resistance is going to be a
factor for us today.  If price moves
higher through the resistance we know the dollar index is strong and therefore
we will sell retracements on the markets we trade such as euro, crude oil , E-Mini-Russell
and gold futures. 

We can also see there is a short-term-trend which is bullish
at this time.  Remember the short-term-trend
can quickly change on the dollar index so keep an eye on this, but for right
now we are selling retracements with new lower-lows on the markets we trade
assuming the short-term-trend continues. 
If we see that trigger-line flatten out and the new higher-highs and lower-lows
stop loss occurring the market MAY trade sideways at this resistance so that
will make it harder to get markets moving and ‘trending’ this morning and we
will lose the directional bias.

Looking for the best trades this morning to occur when the dollar
index tests the turning-point resistance overhead or support below.  Keep an eye on those turning points for the
best times to trade and stay away when the dollar index is in the middle of its
trading range, or if it starts to turn into a price wedge structure.