USDOLLAR testing a bullish trend line at start of week

Dow Jones FXCM Dollar IndexFXCM

Description

⋅ Oct 12, 2015 5:40 AM

The chart speaks for itself. The Dow Jones-FXCM US Dollar Index might try bouncing here at the start of the week ahead of US retail sales data on Wednesday. Without this trend line, prices are really in the middle of a range, meaning that anything can happen here depending on this weeks economic data.

Comments

huntingsniper

⋅ Oct 14, 2015 4:30 AM

Love your posts. What is the difference between DXY and USDOLLAR?

ABRAK75

⋅ Oct 14, 2015 5:51 AM

Thanks! The USDOLLAR (or "Dow Jones-FXCM US Dollar Index") is composed of a basket of currencies, each having equal weighting: EUR, JPY, GBP, AUD.
The DXY is composed of the following:

EUR: 57.6%
JPY: 13.6%
GBP: 11.9%
CAD: 9.1%
SEK: 4.2%
CHF: 3.6%

As you can see, the DXY gives an overwhelming weight to European currencies.