A little misunderstood by most I think. Sometimes it's obvious DXY up, markets down and other times market up DXY not doing anything correlated but just ranging.
It's not exactly always a 1:1 correlation but rather dependent on momentum and the consolidation phases.
We already saw a big flush the last few days, naturally we could expect some sort of retracement or wide (factoring in volatility , look at the VIX movement) consolidation period. The DXY may or may not matter intraday for a small period of time next. But important to see if it consolidates into another up move or a reversal move.
It's not exactly always a 1:1 correlation but rather dependent on momentum and the consolidation phases.
We already saw a big flush the last few days, naturally we could expect some sort of retracement or wide (factoring in volatility , look at the VIX movement) consolidation period. The DXY may or may not matter intraday for a small period of time next. But important to see if it consolidates into another up move or a reversal move.
Note
DXY - added new aspect regarding when the inverse moves happen after consolidation. I think this is a smaller consolidation currently but leading up to a big move where lines cross. It's a rough overlay but the idea is that the major moves happen the lines here "cross" Either up or down but it will be inverse DXY. Disclaimer
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.