INDEX:DXY
FRED:DTWEXM
Here is an interesting difference between #DXY "The Typical most used USD Index" and #DTWEXM "The Trade Weighted USD Index" that is believed to be more accurate than DXY.
The 2 pairs have been identically moving together but now we experience an initiative fall on DTWEXM to break the channel.
Is this telling us something about the future...
I believe we are headed toward a stronger dollar. In the chart is the trade weighted dollar index, which is a larger basket of foreign currencies than $DXY... $DXY is mostly pegged to the EUR/USD with around 65% of its currencies reflecting the Euro or currencies that are heavily reliant on the Euro. The trade weighted index is therefore a better representation of...
The long term uptrend signal I was looking at has triggered here, so I think we can get higher prices in the long term, although I see a very possible retrace in the dollar coming here, but only briefly. If anything it's an opportunity to reenter long term dollar longs.
Invalidation of this thesis would come if there is a big fundamental change that causes price...
![DXY: #DXY VS #DTWEXM [1WC] Will DXY fallow and FALL?!](https://s3.tradingview.com/c/CAPn9BOh_mid.png "#DXY VS #DTWEXM [1WC] Will DXY fallow and FALL?!")
