Daily time frames are the key to my trade selection and while I’ve been busy with entries forex-related futures markets like crude oil and the Dow Jones – I’ve been steering clear of the greenback.

Once again the U. S. Dollar Index is falling from a rejection from the 80.00 area. This time the market was bale to climb to 80.36 before falling back below 80.00 but there has not been a rapid sell-off from there. Instead we’re seeing price action hang around – as if unable to leave the gravitational pull of the 80.00 level.

There continues to be very little this dollar can offer by way of insight into the next leg of sentiment and momentum and in fact because of the “two to four” o’clock angle of the 34EMA Wave, I look for exhaustion. The problem is that there are multiple levels of resistance overhead- and equally uncertain is which of them many support levels below could ultimately become a floor. The triangle pattern will only be in play if the volatility drops and the range narrows, flattening out the 34EMA Wave.

I have been focusing mainly of the Dow Jones to gather any insight into risk and will continue to do so. Another reason is that I am not trading the dollar right now – since it lacks Directional Bias – and frankly using a market I don’t actively trade to gauge risk is like dancing when you really can’t hear the beat. Intraday the most clarity I can see right now is the uptrend on the four-hour chart which is actually triggering a swing buy as prices sink into the dynamic support of the upward angling 34EMA Wave. Right now, the dollar is simply not that interesting and without a clearer picture of QE and whether the U. S. equities market is ready for a more significant downside correction, there’s just not much that the dollar wants to say.

Forex Analysis by Raghee Horner at ForexPros. com