Continuing with another episode of Multi-Timeframe Analysis Series 1, I'd like to break down the DXY.
The DXY being weighted as follows:
EUR - 57.6%
JPY - 13.6 %
GBP - 11.9%
CAD - 9.1%
SEK - 4.2%
CHF - 3.6%
As you may imagine, there's a lot more interest in using the DXY for a correlation / confluence tool when trading the EURUSD. The EURO equates to over half...
The comparison tool is perfect for me to workout confluence and divergences in the markets, Gold sold off after last nights FOMC and Randgold rose this morning after an update this morning. Now the correlation is back where it should be and without this tool I wouldn't be able to work it out!!