Dollar Rallies on Debt Concerns in Europe, Crude Trades sideways and Gold hits new swing highs

News out of Europe this morning has traders concerned that European leaders will have trouble getting the EU Debt under control. This caused the euro to drop overnight and the dollar pushed to the highs of its trading range. We will see how the rest of the day looks as it develops into the US trading session. We have a lot of news to watch today. 8:30 we have Durable Goods Orders which is a very strong leading indicator of the US economy, followed by Home Prices at 10:00 and then our big number of the day will be at 10:30 for Crude Oil Inventories. We will also be doing a special members training today at 11:30am EST. Wednesday’s are always the same for the most part, I will be watching for the 3 phases of Crude Oil before, during, and after the news to make the best trading decisions today. The Dollar Index is currently trading sideways after making new highs from the news overnight out of Europe. The 89Range chart shows us above the Price Wedge highs, and in the middle of the big bull price channel. Rising prices on the dollar will result in falling commodity prices across the board, so we will be looking for selling opportunities when the dollar makes new swing highs. Then look a little faster at the 34range chart on the dollar and you can see we are REALLY trading sideways, not just a move up, but I can see lack of confidence from the buyers at the highs, so we will have to look for more confirmation from the dollar before we can assume a directional bias. At this time we will be using a sideways market on the dollar, but keeping an eye on a rising dollar today from the concerns in Europe. Crude Oil Futures are still trading around the 100.00 Big Round Number this morning, and still trading in the middle of this price wedge, just below the BMT. My goal trading with a price wedge is to buy the lows, sell the highs, and avoid the middle.
I will use these important price levels to plan my specific plan of attack today on the CL 07-11 contract. One thing I cant help but notice are the large candlestick ‘wicks’ you can see on this 89range chart. Those long wicks are signs of confusion, lack of direction/confidence, and we know that the BMT overhead will act like a magnet. Keep a close eye on the price action today, it may be challenging seeing this already. Gold made new highs overnight above the major resistance at 1526.8 and we look to see where the market will go from here. We recently broke above the Price Wedge, above the highs of the sideways range, and with the PHOD and BMT well below us we know to expect price will want to come back down. However, we will keep our eyes on new highs above 26.8 and I will be buying pullbacks if the buyers maintain control to the highs. The Dollar has been sideways for the past 6 hours, and this will be a correlated market I will be watching. If the dollar takes off to the highs again I can expect a reaction on gold. I will be reading tape looking for clues to market personality with the dollar. We Love Your Feedback! Read and Post it here J Live Trade Room is open, come join us! Click here for helping logging into the Trade Room