Inside technicals and chart patterns by 
I get this question a lot, probably more often than any other…
I really have mixed feelings about it because frankly it doesn’t matter to the trader in me. The consumer however does care, especially since speaking obligations will take me to Paris and London this year.
As a trader my main concern is movement…beyond that I avoid two common mistakes:
1) trading with a directional bias
2) expecting reversals
I think these two mistakes are common psychological traps many traders fall into and as ‘07 comes to a close I think many traders start thinking about the more mental aspects to their trading game.
I wake up each morning with no expectation of anything: up, down, or sideways I wait for an opportunity. I have seen the price action over the years so many times that it’s much like an golfer who is setting up a familiar shot or a quarterback recognizing a defensive play.
Many traders, especially traders watching the dollar, are anxious for a reversal…again, if I find myself waiting for a reversal it’s because I am not in the current trend. Think about it: If you are short are you anxious for any kind of reversal? No way! You hope the trend will last forever.
I take it one step further. I like to look at both sides of any trade. When I am setting up a buy, I think about what a trader would perhaps see if they were looking for a short. Any good attorney or debater would do the same: look at both sides of the argument.
Ok, so where is the Dollar going in ‘08. Honestly I don’t know and I don’t care. But what I can tell you is what the chart is telling me.
While prices have found some running room above my Wave, I can also see that the recent pullback will be the first opportunity we have to see whether the Wave will support the dollar above 77.00 - which is a big psychological level that dollar bulls hope will hold.
I think as long as prices on the daily chart can find support above the Wave the uptrend has a chance. The next hurdle to the upside is 78.00. Any continued climb higher will be measure by the dollar’s ability to attract buyers at each "00".