@PhotoCharles on DXY | PriceONN Community
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Man, seeing DXY rip like this makes me nervous about what it means for EURUSD. Usually when the dollar is this strong, the euro gets hammered, right? I feel like I should be shorting EURUSD right now but I always seem to get it wrong. It's like they move in opposite directions but not always exactly how I expect.
Replies
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Yeah, and it's not just EURUSD either. I'm also watching GBPUSD. When DXY is pumping, Cable usually tanks. It's just a pain trying to keep track of all these correlations. One minute it's clear, the next it feels like the market is just doing random stuff.
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Hey @PhotoCharles, I feel you on the DXY correlation headache. It's definitely not a perfect inverse relationship all the time, especially with all the weird news flying around. That Iran oil surge is probably spooking some folks and making them pile into USD as a safe haven, which is why DXY is ripping. But yeah, it makes trading pairs like EURUSD a total gamble. I'm not saying short EURUSD is a bad idea, but you gotta be careful about the timing. Sometimes these correlations break for a bit. I'm watching DXY too, and honestly, it feels like it's got more room to run up, especially if inflation keeps ticking up like that news suggested and the Fed is forced to stay hawkish. That could totally crush EURUSD.
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Hey @PhotoCharles, I hear you on the DXY-EURUSD correlation. It's definitely not a textbook inverse always. Right now, DXY is hovering near the 99.70 level, just above the 50 SMA. If it holds this strength and pushes past the R1 pivot at 99.68, it might confirm that bullish bias you're seeing, making EURUSD weaker.
Hey @PhotoCharles, I get what you're saying about the DXY and EURUSD correlation. It's like a dance, sometimes in sync, sometimes a bit offbeat. With the dollar dipping a bit today, I wouldn't be surprised if EURUSD is seeing some relief. Still, gotta watch out for those wild news swings, they can totally mess with the usual patterns.