Dollar index day trading strategy

The dollar index has been pushing
higher over the past few days after fears in Europe continued over the
weekend.  Now this morning we find the dollar
index trading at the range highs once again, and we’re looking at three possible
scenarios today.  First, the dollar index
may be strong enough to push to new higher-highs.  Second, the dollar index may reverse off this
resistance and fall back lower.  Third,
the buyers and sellers may not be able to agree on rising or falling prices and
the price on the dollar index may ‘stick’ at the highs and trade sideways.

Professional traders need to be prepared for all
3 scenarios today, trying to anticipate where the dollar index may go will
enable us to prepare for scenarios that will set-up in markets such as Crude
Oil, E-Mini-Russell, euro, and gold futures. 
This morning we can see a rising dollar index, and with that fact we
know we will be selling retracements as the high-percentage trades this
morning, however, we will be keeping a close eye on this all morning to see if
this strength on the dollar index can continue.

Check out the 55-Range chart and you can see the double-bottom has provided us with resistance just above our current price today.  This looks ripe for a test of this res of 81.870 and then a possible failure.