Today is an FOMC minutes day and its 12:40 pm Central Standard Time. This means that almost nothing is going on in the US markets as participants wait for the report to be released. So, to pass the time, here are a few charts to ponder. Starting with the Dollar Index:
The dollar index seems caught between a rock and a hard place. After making a "power buy" structure (white lines) straight into a support zone (blue lines), the index has rallied for 3 days and is now back into a resistance zone (red line). There is a good chance that the index spends a week or two ping-ponging between the blue-line support zone and the red-line resistance zone.
Next up is Cotton:
Cotton is in an uptrend but it is one of those up-trends that seem to be just a massive consolidation. Today's action brings it close to the lower trend line. Therefore, there's a good chance that a small rally can occur back to the upper end of the consolidation.
Now for Live Cattle
June Live Cattle is in a downtrend on the daily charts and has now formed a Power-Sale structure that has also taken the form of a triangle. A break of this triangle should be a catalyst for new price moving below 140.