DXY long, UPDATE, EXPLAINED, Market behavior, Correlation
Hello Traders !
What is the DXY?
It is an index of the value of the United States dollar relative to a basket of foreign currencies. The Index goes up when the U.S. dollar gains strength (value) compared to other currencies.
Why do we need to analyze it?
Actually I like to have a look on the DXY because of the Correlation. So the DXY is nice to use when we are trading XAUUSD , EURUSD , AUDUSD , GBPUSD . Usually when the DXY goes up, the mentioned pairs will go down. Just watch for example EURUSD and XAUUSD the last week and compare it with the DXY. You will see what I am talking about.
Chart Analysis:
If we are looking at the chart we can see that we dropped now from a daily Demand. We now go 2 option.
#1 - Price going up again, down, retest and then drop
#2 - Price going higher, retest the the Demand and shot up
For the final confirmation wait for Price Action to show you signals.
That was my Idea and I hope you did like it. Please leave a LIKE if you like my Content that I share with you. In the comment section you can tell my your view and ask questions.
Thank you and we will see next time
- Darius.
What is the DXY?
It is an index of the value of the United States dollar relative to a basket of foreign currencies. The Index goes up when the U.S. dollar gains strength (value) compared to other currencies.
Why do we need to analyze it?
Actually I like to have a look on the DXY because of the Correlation. So the DXY is nice to use when we are trading XAUUSD , EURUSD , AUDUSD , GBPUSD . Usually when the DXY goes up, the mentioned pairs will go down. Just watch for example EURUSD and XAUUSD the last week and compare it with the DXY. You will see what I am talking about.
Chart Analysis:
If we are looking at the chart we can see that we dropped now from a daily Demand. We now go 2 option.
#1 - Price going up again, down, retest and then drop
#2 - Price going higher, retest the the Demand and shot up
For the final confirmation wait for Price Action to show you signals.
That was my Idea and I hope you did like it. Please leave a LIKE if you like my Content that I share with you. In the comment section you can tell my your view and ask questions.
Thank you and we will see next time
- Darius.
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✔️Instagram: instagram.com/dariusfxtrading
✔️ Telegram(german): t.me/dariusfxtrading
✔️ Top Broker💯 my.roboforex.com/de/?a=skxb
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