What is DXY doing and why it matters?
Technical Analysis:
* Price is above 200EMA and above both 14&21EMA, and are acting as support.
* RSI is above 55, indicating good buyer strength.
* RSI has broken the downward trend line and is retesting that trend line.
Trade Idea:
To be a good and comprehensive trader, its always a good practice to check correlations of other forex pairs and indices so as to get that extra confirmation and confidence on your trade analysis. So, in this post, I will be demonstrating how the Dollar Index is expected to move in the coming weeks or even days so every trader knows what to look out for.
DXY is currently in a range bound market. As of now, we can see the 200EMA in combination with 14&21EMA are both acting as support, so with favourable price action, I am expecting one more leg up from the dollar index to the yellow trend line before reversing back down to the recent major support zone. As extra confirmation, the RSI has also broken the downward trend line and is bouncing off that trend line, indicating that buyers are most likely to gain more strength than sellers, hence will likely push the index higher in the coming days.
Overall, DXY is expected to be bullish at least for this week. So, traders who are holding major pairs such as EURUSD, GBPUSD, USDJPY, USDCAD, USDCHF, AUDUSD, NZDUSD should pay close attention to this. #tradesafe
* Price is above 200EMA and above both 14&21EMA, and are acting as support.
* RSI is above 55, indicating good buyer strength.
* RSI has broken the downward trend line and is retesting that trend line.
Trade Idea:
To be a good and comprehensive trader, its always a good practice to check correlations of other forex pairs and indices so as to get that extra confirmation and confidence on your trade analysis. So, in this post, I will be demonstrating how the Dollar Index is expected to move in the coming weeks or even days so every trader knows what to look out for.
DXY is currently in a range bound market. As of now, we can see the 200EMA in combination with 14&21EMA are both acting as support, so with favourable price action, I am expecting one more leg up from the dollar index to the yellow trend line before reversing back down to the recent major support zone. As extra confirmation, the RSI has also broken the downward trend line and is bouncing off that trend line, indicating that buyers are most likely to gain more strength than sellers, hence will likely push the index higher in the coming days.
Overall, DXY is expected to be bullish at least for this week. So, traders who are holding major pairs such as EURUSD, GBPUSD, USDJPY, USDCAD, USDCHF, AUDUSD, NZDUSD should pay close attention to this. #tradesafe
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