The DXY is the favorite chart of all.
Understanding it gives you enormous benefit when trading FX.
If you observe carefully, OIL and DXY moves in almost the same way but with ONE NOTABLE INTERESTING POINT. The PEAK and TROUGH in OIL is almost always ahead of DXY by at least 3 months. What this mean is that we can tell when DXY will PIVOT much in advance just by looking into OIL. This is because OIL being the most traded commodity moves according to MARKET almost instantaneously, with little lag.
Looking at OIL and understanding it will let us know in ADVANCE how DXY will move in the longer term.
Good luck.
P/S : As always, do not just believe what I say. Use your common sense.
Understanding it gives you enormous benefit when trading FX.
If you observe carefully, OIL and DXY moves in almost the same way but with ONE NOTABLE INTERESTING POINT. The PEAK and TROUGH in OIL is almost always ahead of DXY by at least 3 months. What this mean is that we can tell when DXY will PIVOT much in advance just by looking into OIL. This is because OIL being the most traded commodity moves according to MARKET almost instantaneously, with little lag.
Looking at OIL and understanding it will let us know in ADVANCE how DXY will move in the longer term.
Good luck.
P/S : As always, do not just believe what I say. Use your common sense.