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 I've let the Daily remain zoomed out to show the potential for a consolidation formation. It looks closer matched to an Ascending Triangle (potential to break to the upside or downside) rather than a Rising Wedge (strictly reversal pattern).
If the Monthly is looking prime for a sell-off, I must favour the Ascending Triangle breaking to the downside. Only time will tell, but I won't be counting on massive Dollar Strength beyond 97.50 unless we see a big Weekly close above this key level.
Unless this starts to break down below the 96.00 handle, it's still bullish for me moving into next week.
Key Note Look at how price isn't respecting the EMA's as well as it has done in the past. This is an indication of consolidation occurring on this timeframe.