For the Technical Trader

US Dollar Index

How Does the United States economical data effects the market?

If you are trading the US Dollar against another currency it is also a good idea to do your technical analysis on the US index as well, but mostly on the daily scale to give you an idea of what might probably happen to the price action and in which direction you should trade.

If the US Dollar index goes up only currency pairs where the USD is the base currency will move in the same direction, where the US Dollar is the quote currency like in GBPUSD or EURUSD will move in the opposite direction.

An Example: We discuss technical analysis in the e-book, you can use the tools supplied on the right, take note that this is only a print screen.