Dollar index price wedge day trading strategy

The dollar index rolled forward to the 06-12 contract this
morning so reminder to check your charts to trade the current front month
contract on the dollar index.

We have the dollar index trading in a price
wedge, inside the range from Friday and just above the PLOD. We can see support below us if price falls
and resistance above us if price rises. Remember
the best trades come when the dollar index is testing support and resistance levels
because that’s when the dollar index really starts to move best.

Just when we think we know everything we need from the dollar
index we need to find the short-term-trend and we use the faster 13-range chart
to define that. The short-term-trend is very
important for a directional bias, and without the trend on this 13 range chart
we have no directional bias.

We see flat trigger lines, very narrow price
action, and trading right around the open.
This combined with a price wedge structure and we know to fade-the-breakouts
and look for failures at the highs and lows so we can buy the lows/support and sell
the highs/resistance of the ranges we trade.