Continuing with another episode of Multi-Timeframe Analysis Series 1, I'd like to break down the DXY.
The DXY being weighted as follows: EUR - 57.6% JPY - 13.6 % GBP - 11.9% CAD - 9.1% SEK - 4.2% CHF - 3.6%
As you may imagine, there's a lot more interest in using the DXY for a correlation / confluence tool when trading the EURUSD. The EURO equates to over half of the overall weight of the index, meaning there's a majority interest in the EUR vs USD.
We can use this to our advantage, alongside the USDOLLAR INDEX, to add positive or negative trade factors when considering positions across USD pairs and commodities.
Comments Looking at the Monthly timeframe we appear to be stalling between the 61.8% retracement of A>B as indicated on the chart. Price is showing high test candles at this level, as well as a potential rolling double top (continuation formation). Given the circumstances of this in its current form, 94.00 could easily be on the cards as we move into the second quarter of 2019.
Key Note At time of writing this, it's the current monthly candle cannot be considered an indication of direction just yet as it hasn't fully formed (being the 24th of the month).
So you saying as the dollar has risen you will drop on monthly time frame around the 61 fib area. I reckon it will go to around 99 - 100 before dxy dropping
robdee4x
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@xinvested, hey - if you check my Weekly breakdown I noted that the Weekly was showing signs of bullish pressure, against what the Monthly was looking like.
At the time of breaking down the Monthly, the candles weren't complete (mid-month).
The Weekly and Monthly were conflicting in their directional bias.
And as you've rightly said, I think 100 or just short of 100 is now likely :)