Using DXY index as a reference point while taking trades
Hi guys,
This is a very interesting chart and I have alway been a great fan of this index chart. If you have a close look you shall see we have this ascending channel since May 2018 and never been broken since. Price action continously making new higher highs. Now that it has reached to the bottom of the ascending channel price action should reverse from there and try to make an attempt to make a new high in coming days, unless we see a break below that channel and staying there which is unlikely in my opinion as the current trendline is very solid and it will take a lot to break below.
The DXY index gives a better overview of how the $ will play when taking trades with other currencies. When going long or short against $ we can always crosscheck DXY index for further confirmation.
For now I'm expecting a reversal on the DXY index and place my other $ related trade accordingly but of course I will check any subject currency meets my trading criteria and then I use DXY as a further confirmation reference point.
Feel free to share your thoughts.
Trade safe and good luck.
This is a very interesting chart and I have alway been a great fan of this index chart. If you have a close look you shall see we have this ascending channel since May 2018 and never been broken since. Price action continously making new higher highs. Now that it has reached to the bottom of the ascending channel price action should reverse from there and try to make an attempt to make a new high in coming days, unless we see a break below that channel and staying there which is unlikely in my opinion as the current trendline is very solid and it will take a lot to break below.
The DXY index gives a better overview of how the $ will play when taking trades with other currencies. When going long or short against $ we can always crosscheck DXY index for further confirmation.
For now I'm expecting a reversal on the DXY index and place my other $ related trade accordingly but of course I will check any subject currency meets my trading criteria and then I use DXY as a further confirmation reference point.
Feel free to share your thoughts.
Trade safe and good luck.