Works with the EUR too - and even better sometimes because of the EUR weighting in the USD index. Not the trade weighted or the LTE USD index....those are calculated differently.
EUR: 57%
JPY: 13%
GBP: 11%
and...the USD index is, an INDEX. So, the movements of those currencies are what dictates the dollars direction at the end of the day and if you have the EUR and one other (JPY or GBP) in a similar direction/topping/bottoming together, you're going to have a clear view of what's in store for the dollar. Shocks me how many traders don't say anything about this.
I've watched a EUR futures chart with a DX overlay on it and the two charts separately for a while....It's a mirror....
The attachment is a WEEKLY chart, so, it'll definitely take some time for it to play out, but, it will. It's not a day trade but a longer term idea to be mindful of as the FED keeps trying to keep it's credibility intact....and OIL doesn't play nice...and interest rates/ROI take a backseat again...
Heh...hadn't done it with the GBP...nice...
another favorite is the NKD and the JPY...similar "phenomenon".....
The scaling gets rough at best on shorter timeframes so the introduction of other tools or multiple charts laid out becomes crucial but it is tradeable. Enjoy...
Again, WEEKLY charts, so, don't blow up my inbox over betting the farm on this all playing out before breakfast tomorrow...
EUR: 57%
JPY: 13%
GBP: 11%
and...the USD index is, an INDEX. So, the movements of those currencies are what dictates the dollars direction at the end of the day and if you have the EUR and one other (JPY or GBP) in a similar direction/topping/bottoming together, you're going to have a clear view of what's in store for the dollar. Shocks me how many traders don't say anything about this.
I've watched a EUR futures chart with a DX overlay on it and the two charts separately for a while....It's a mirror....
The attachment is a WEEKLY chart, so, it'll definitely take some time for it to play out, but, it will. It's not a day trade but a longer term idea to be mindful of as the FED keeps trying to keep it's credibility intact....and OIL doesn't play nice...and interest rates/ROI take a backseat again...
Heh...hadn't done it with the GBP...nice...
another favorite is the NKD and the JPY...similar "phenomenon".....
The scaling gets rough at best on shorter timeframes so the introduction of other tools or multiple charts laid out becomes crucial but it is tradeable. Enjoy...
Again, WEEKLY charts, so, don't blow up my inbox over betting the farm on this all playing out before breakfast tomorrow...
"Holy Grail" exists - accepting where is the first step.