The DXY is @ a level that could cause some weakness for the dollar. I will be watching the DXY to see how it affects my long USDCAD trade from this morning. I have identified the 2 levels that I am watching. This is not a trade idea just an observation.
@FaizRabo, Its not that it affects the USDCAD. The DXY is the us dollar index. (shows weakness and strength of the us dollar). Example I am currently short the USDCAD from this morning. Unrelated trade fro the DXY. However, as the DXY has rallied into the current level I am expecting a selloff from current level. IF the DXY sells off from here (showing dollar weakness) I expect to be stopped out of USDCAD long position and look to sell the USD. This doesnt mean I will just go sell all USD crosses. I will however keep the DXY in mind when reading priceaction and looking for structure levels to buy and sell from. Hope I explained this so you can understand it. be sure to follow me on twitter if you dont all ready. @rozela99
rozela99
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@rozela99, Sorry Im actually long the USDCAD not short