Dollar index buying opportunity

July 16, 2015 10:17 AM

This is the third buy signal on the daily chart that I have had since the dollar trend changed back to up two weeks ago.

The dollar is still in a trading range, my research suggests that the dollar needs to close above 97.45 to establish a longer term uptrend, except for the British pound, most of the other currencies have given fresh sell signals today. The Canadian, Swiss and Australian have recently suggested that they are in a longer term trend down and have broken out of there congestion on the daily charts.

Gold and silver have also had sell signals this week and have broken out of there congestion. The dollar may follow all these opposite collated markets and break to the upside. The weekly chart in the dollar has had a nice correction to the downside and now has been trending back up for the past month. The monthly chart has been super trending up since I had a King's Cross indicator counter trend buy signal a year ago. Taking out 97.76 will give me a traditional trend buy signal on the monthly chart. 

About the Author

Larry Baer is a senior broker with Zaner Group. He has been in the futures industry for 30 years and his prior experience includes a membership at the Chicago Board of Trade.  During his 10 years on the trading floor, he traded and managed a futures and options operation, which serviced both retail and institutional clients.  He is also the author of “The Trader's Tool Box.”  He may be reached at lbaer@zaner.com and  312.277.0112.