WHY FOLLOW THE DXY?
If you trade Forex or Gold, you should understand the DXY.
The DXY measures the strength of the US Dollar. When the Dollar strengthens, USD pairs and Gold can react differently than when the Dollar weakens.
For EZFX traders, DXY is not an entry signal. It is confluence.
Before taking a setup, ask:
Is DXY bullish or bearish?
Where is DXY reacting from?
Is it at support, resistance, or a trendline?
Does its direction support my trade?
Trade the chart. Use DXY for confirmation.
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