Dollar index day trading strategy uses the price wedge as a big clue for day traders

We use the dollar index for two main reasons; first, to find
the short-term-trend so we can trade against this trend using the negative dollar
index correlation. Second, we look for
possible turning points on the dollar index using the major support and
resistance. In other words, if the dollar
index is trending, we expect other markets to trend as well, and if the dollar
index tests resistance or support we consider the opposite on the markets we
trade. So resistance on the dollar index
is consider support on the markets we trade.
I’m looking for the dollar index to react around these levels. If the dollar index trades through support
and resistance it gives us BIG CLUES we can use to profit with today.

All the resistance overhead on the 21 range chart tells us
that as the dollar index rises we see lots of potential for the buyers to fail
and for price to reverse and come back down.
This will be a great opportunity to sell retracements if the dollar index
rises and then falls back down.

If price falls lower on the dollar index we have the support
of the major trigger-zone and the PLOD as well as the trend line and the lows
of the price wedge all acting as support.
The price wedge pattern tells us to fade-the-breakouts so as price rises
I’m expecting it to fail and then fall, and as price falls, support will hold and
buyers will push it back higher.

With no short-term-trend this morning on the
13range chart we do NOT have a directional trend bias to trade with today. This trend can change, so keep an eye on this
chart throughout the morning.