Here we have the US Dollar Index Daily chart with the classic triangle pattern being displayed. The textbooks tell you to play the longside breakout here, and that may be correct. However, if you notice the last time we consolidated at this level we broke to the downside about two months ago, I think if we break below the lower line this is a good low risk short sale opportunity. In trading there are never any guarantees and many trades look silly after the fact when they don't work, this could be one of those. However, I like the fact that the pivots are lower during the last two weeks and that the one oscillator is leading downward as supporting this entry.



I have been bullish on the dollar for awhile and bigger picture think it will rise, but if we break down from here on a short term basis I will be short this market. A break upward just would further confirm the uptrend. I am expecting a bit of a bounce in stocks here this week so this should move opposite of that, which would be down.