Three Major Currency Indexes and Three Great Trading Occasions. USDX, EURX and GBPX

Today, we will analyze the technical situation on three currency indexes. Analyzing an index is a great option to check the general sentiment towards one particular currency. We can later use it to trade many other interesting instruments.
Tomasz Wiśniewski
Three Major Currency Indexes and Three Great Trading Occasions. USDX, EURX and GBPX

Let’s start with the most popular one – DXY, so Index od the American Dollar. Most recently, USD found a very strong resistance – mid-term down trendline and the 38,2% Fibonacci. Only the fact, that the price met the resistance is not enough to be bearish – you need some sort of a rejection or a bounce from those high levels. To be honest with You, this is exactly what we got thanks to two daily shooting star candles. As long as we stay below the green line, the sentiment is negative.

Next instrument is the EURX, so the index of the Common Currency – Euro. Here we do have a very handsome technical pattern, promoting a bullish reversal. This formation is an inverse head and shoulders. It is already up and running as overnight, we broke the neckline, which in theory brings us a buy signal. The closest target is on the highs from December.

Now, a bit forgotten Sterling with the GBP Index. Forgotten as Brexit is no longer a hot topic in the media. Here, we do have two bearish signals but we are still waiting for the main one, which would give us a great trading occasion. First of all, we broke the lower line of the triangle. What is more, we broke the up trendline. The one think that is missing is the breakout of the major horizontal support. Once that will happen, we will have a legitimate occasion to go short.

This article is written by Tomasz Wisniewski, Director of Research and Education at Axiory

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US