The Dollar index has taken a tumble today. Instead of breaking above the neck line of the inverted head and shoulders pattern, the DXY rejected hard off of it, sending the value of the dollar vs other currencies down, in a big way.
FOREX pairs are going nuts today, so if you are trading EUR/USD, AUS/USD, or other currency pairs, good for you!
The stock market is on an insane rise too. The SPY Index which is the S&P 500, is up nearly 4% so far on the day.
Bitcoin and the greater crypto industry took a bit of a tumble as well, but is starting to quickly turn and recover as the dollar continues to plunge.
In my humbled opinion, the DXY is one of the most important charts to pay attention to in trading. It can set the balance of the market and the direction that other assets will be running. So make sure you keep it in your watch list and make it one of the first charts you check before you start your trading day.
But always be cautious because nothing goes up or down forever, and with a pump like this in so many markets, short term traders could be looking to take some major profits off the table later on.
Be safe out there and trade logically!
This was originally posted as an idea on my TradingView account!
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Many of my cryptocurrency related articles can also be found on my crypto research site, Coin Logic.
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Disclaimer:
The information in this trade journal is for educational purposes only and should not be considered financial advice. Please consult with a qualified financial advisor before making any investment decisions.
