Trading with Index
Updated
Index depicts the strength of each currency. The index is also often used as an indicator of a country's economic health. If the index strengthens, then the country's economic growth is considered stable.
Thus, this index can be used as a basic map of the movement of each pair in forex trading.
In general, people know the dollar index as DXY, but you need to know that each currency has its own index, for example, Euro with EXY, British pound sterling with BXY, Japanese yen with JXY, Canadian dollar with CXY, Swiss franc with SXY , Australian dollar with AXY, and New Zealand dollar with ZXY.
If we draw the trend in each index, it will be very easy to read currency movements in each pair, or choose an index in a different direction.
In this example, it can be seen that DXY is in bearish pressure, but is already at the support level, and AXY is in a bullish position but is already at the resistance level. If DXY is bullish towards resistance, and AXY is bearish towards support, then the AUDUSD trend will experience a strong bearish correction.
However, this condition only lasts a moment until the DXY resistance point and the AXY support point. And if this happens, then AUDUSD will be bullish again
Thus, this index can be used as a basic map of the movement of each pair in forex trading.
In general, people know the dollar index as DXY, but you need to know that each currency has its own index, for example, Euro with EXY, British pound sterling with BXY, Japanese yen with JXY, Canadian dollar with CXY, Swiss franc with SXY , Australian dollar with AXY, and New Zealand dollar with ZXY.
If we draw the trend in each index, it will be very easy to read currency movements in each pair, or choose an index in a different direction.
In this example, it can be seen that DXY is in bearish pressure, but is already at the support level, and AXY is in a bullish position but is already at the resistance level. If DXY is bullish towards resistance, and AXY is bearish towards support, then the AUDUSD trend will experience a strong bearish correction.
However, this condition only lasts a moment until the DXY resistance point and the AXY support point. And if this happens, then AUDUSD will be bullish again
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AUDUSDNote
USDCHF
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