**Bias for Dollar:
As long as we stay below the upper quadrant price will consolidate.**
Once we close above 0.75 level we can expect the rally higher to continue.
What causes us to call for a trading range environment until there's a definitive close above the upper quadrant? It can go higher, but because we don't know where we're going to open up and we don't know what's likely to occur because of some kind of terrorist action, some kind of war response. All those things are going to rev up these sentiment ideas, and fear and greed will start coming into the marketplace. That makes it a little bit different in terms of a normal market delivery. So there's a whole lot of fear in the marketplace right now, and we're going into the last quarter of the year, where markets have a lot more activity, and whoever's tried to make money this year, they're going to try to do whatever they can before the close of the year because, as we get closer to December, it's less likely for new risk to come into the marketplace. It's winding down as we get closer to the second week of December, and then we get to start expecting the markets to start to soften up.
If price does drop inside that BISI, we watch and see how it behaves there. Not immediately jump in on the shorts for EUR/GBP. If we get a Daily close below the BISI then we are going for the lows of the blue range. If price drops just momentarily and then quickly snap back up above, then we can resume looking for the upper quadrant level.
Because of all the uncertainty in the world right now, it might be a short period of time where gold and the dollar move together, which is not historically what you would expect. They're usually diametrically opposed; one goes higher, other one goes lower;
Thursday and Friday we had both Dollar and Gold going higher. What would normally be a diametrically opposed delivery, look what we're seeing here. Gold and the dollar are moving in tandem. That's something that we don't like to see. We'd like to see where there is a diametrically opposed delivery, where a symmetrical market would be where the dollar goes lower, gold is permitted to go higher. It doesn't mean that it will go higher; it just means that it's the most likely won't go down. It can consolidate and slowly work its way higher, but either way, it should not be moving in the same direction. Now, what causes these types of things? It's an event-driven market. Gold is highly manipulated, and it's also treated as sometimes as a safe-haven market as well. Couple that with the fact that there are central banks around the world that are really trying to build up their gold supplies because they're going to be doing central bank digital currencies.
Our focus is on what we're seeing in gold because gold's going to be the catalyst behind the follow-through higher on the dollar. Or if Gold continues higher for the Buyside…
<aside> 💽 Symmetrical market: Where they're doing the opposite of one another, that is a symmetrical market. That means everything is on the level, meaning that if you're bullish on the dollar, there should be weakness in gold, or there should be no strength in gold going higher, and all foreign currencies should move lower. Equities should start going lower, and they have a short-lived rally. If it does rally, they're suspect rallies, they're fake rallies, they're just going up to go into an inefficiency and quickly reject it or go up above a short-term high and then reject it. That's how you use the dollar index.
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