How well it works Nice moves on the DXY. I made an analysis a while ago on DXY where I marked an important h4 Supply Zone. Price respected this zone pretty well. I will put a screenshot down below. We are now back at this zone. Now I am expecting the price to break it. Why? Simply because we go too much touches there. The probability that the price will go down is not high. Therefore I am going to look for long positions. For that I am waiting for a nice Price Action Confirmation. My target is the resistance level.
Why do we need to analyze the DXY? Actually I like to have a look on the DXY because of the Correlation. So the DXY is nice to use when we are trading XAUUSD , EURUSD , AUDUSD , GBPUSD , NZDUSD . Usually when the DXY goes up, the mentioned pairs will go down.
That was my Idea and I hope you liked it. Please leave a LIKE if you like the content. In the comment section you can share your view and ask questions.