Euro is collapsing, Japanese Yen is under pressure and Dollar is soaring. The US Dollar has advanced for 8 straight weeks - matching its longest run on records - That's the current state of currency market.
The US Dollar Index (USDX) is an index (or measure) of the value of the United States dollar relative to a basket of 6 foreign currencies:
- Euro (EUR), 57.6% weight
- Japanese yen (JPY) 13.6% weight
- Pound sterling (GBP), 11.9% weight
- Canadian dollar (CAD), 9.1% weight
- Swedish krona (SEK), 4.2% weight
- Swiss franc (CHF) 3.6% weight
Here's the current daily chart of Dollar Index
The current market price is 84.23
The move is significant considering USD index is very close to 5 year high of 85. The moment Dollar index breaches that level, there will be more panic and turbulence in currency market.
Remember most of the commodities are priced in USD and a strong dollar means lower price of assets priced in USD. We don't know what kind of impact this change will have on Global financial market. DXY (Dollar Index) is something to keep an eye on
The blogpost is purely for educational purpose. Please do your own due diligence before trading. The objective of writing these posts is to demonstrate how technical analysis works and has its own logic.