I hope you are all having a great weekend.
In this Article i will be taking a look at the US Dollar Index on the Daily timeframe.
Looking at the daily chart below we can see that over the last week we have seen some nice strong bullish accelerating movement which has led the Dollar to break above the previous daily lower high leading price into the area of 12380.
Price on Friday managed to spike to the highs which we have not seen since April 201.
Price has also been showing ranging movement for some time, since roughly August/September 2018.
If we are to see price continue with the bullish momentum and break the area of 12388 this would give price space before the next key resistance at 12450.
Why do i look at the US Dollar Index?
The US Dollar Index gives us indication on whether the US Dollar is showing strength or weakness. This helps with trading correlated pairs which include the USD, for example: EUR/USD – GBP/USD.
James at Technical FX132