Dollar index trading a short term price channel just above Wednesday’s highs

We use multiple timeframes on the dollar index to find the
most important levels of support and resistance along with any short-term-trend. The 89 range chart on the dollar index showed
us the big price structures, and then the faster 21 range shows us the short
term trend and the most important levels above and below me for today.

The two goals on the dollar index is to find potential
turning points and the short-term-trend.
This morning we can see the dollar index trending higher, so the long
term direction bias will be to the SHORT side of the market. As the dollar index rises everything else is
moving lower, and when the dollar index tests the LOWS of this price channel,
we will have the best opportunities to sell.

Another easy way to use the dollar index is to plan our
trades with the support and resistance in mind.
For example, if the dollar index is at the HIGHS of the price wedge, its
most likely price will fall from this resistance at the highs, and when the dollar
index falls everything else rises. So at
this time dollar index trades at the highs of the price channel and price wedge
so we need to be looking for buying opportunities.

As price rises we have resistance, and as price
falls we have room to fall, so rising prices at 800am EST on the dollar index are
going to be hard to see, expect falling dollar index and higher prices on the
markets we trade for the short term future.