Dollar Index and EURUSD Trading Strategy

Dollar Index and EURUSD Trading Strategy

In this real-time example, I explained in detail a profitable trading strategy between the dollar index and the EURUSD.

The dollar index is useful when trading USD-related pairs, given that the dollar index takes its value from a basket of USD-related currencies.

In this analysis, I have combined the EURUSD and the dollar index (DXY) for better performance.

You may watch the video for further details!
Thank you and Good Luck!

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Comment:

Comment:

The focus for the USD pairs today will be on the "ADP Employment Change" and "Fed's Chair Powell testifies"

Both of these news will be interpreted by the market about future expectations for a possible rate cut at the June FOMC meeting.

Trade closed: target reached:

Trade closed: target reached:

After the bearish breakout, the price declined as expected.
The Possible movements between DXY and EURUSD are explained in detail in the analysis above.

Comment:

During the opening of the US Market, the focus will be on the ECB Interst Rate Decision.

Interest rates are expected to remain unchanged at 4.5% as inflation weakens.

ECB may keep the interest rates unchanged for the fourth consecutive meeting.

The market will not expect any comments on early rate cuts during the meeting.

However, lower inflation is raising the chances that the market could speculate on a possible rate cut earlier than the Fed.

This is creating a bearish dominance in the EURO today.

Comment:

🚨ECB’s Villeroy: Rate cut in the spring is 'very likely'

This is a clear manipulation that creates instability after the ECB meeting.
President Lagarde said nothing about a possible rate cut soon.
Now we see these comments from ECB representatives the day after the ECB meeting, which is not honest from them.

These comments posted a few minutes ago created a slight sell-off in EURO pairs, which is already persisting.

Trade closed: target reached:

Comment:

DXY - all as explained:)