The sideways chop on the U.S. Dollar continues as the index was rejected from the 76.50 level for the third time since late-May. What does this mean for your trading and how can you handle the summer chop?
Part of my advice in this video is first to recognize the Directional Bias (always from the Daily time frame) and understand what the overall psychology of the pair is. When the daily has lost its trending characteristics it’s best to “retreat” to shorter time frames in order to handle the possible lack of longer-term follow-through that occurs when a pair is (overall) range bound.
Focusing on the five, 15, and 30-minute time frames is one way of handling the LACK OF ORGANIZED sentiment and momentum that seems to be ruling most of the dollar-correlated pairs with the exception of the USD/CHF – which remains in a downtrend.