Important: Understanding How & Why FED affected other USD pairs?
Updated
Hello Guys, There are many *new traders who don't know how DXY affect directly or indirectly on other USD pairs depending on base and counter currency pairing. I have elaborated with some example. DXY is showing a move down and we got the fall according to the formation of the pattern. DXY is directly proportional to the pairs which have USD as their base currency (like USDCAD, USDCHF) while its inversely proportional to the pairs in which USD is a counter currency (Like EURUSD, GBPUSD etc).
So here DXY fall and USDCAD fall too.
DXY fall and you can see that EURUSD and XAUUSD rise.
Here is one thing you should keep in mind that price don't always move in the same manner, means its not like that every move is according to it. It also depends on counter currency strength too. So its not that simple.
But there are some clues which helped us in identifying the possible move. In these example you can see that we got a PATTERN and after its breakout we got a lower degree correction except XAUUSD in which lower correction formed inside the pattern. But it was quite clear that price is going to move in the continuation manner right after the breakout of lower degree correction.
One more thing you need to keep in mind "MARKET NEVER MAKEs MISTAKE, PEOPLE DO."
All you have to do is analyze it correctly.
Have a good day! :)
So here DXY fall and USDCAD fall too.
DXY fall and you can see that EURUSD and XAUUSD rise.
Here is one thing you should keep in mind that price don't always move in the same manner, means its not like that every move is according to it. It also depends on counter currency strength too. So its not that simple.
But there are some clues which helped us in identifying the possible move. In these example you can see that we got a PATTERN and after its breakout we got a lower degree correction except XAUUSD in which lower correction formed inside the pattern. But it was quite clear that price is going to move in the continuation manner right after the breakout of lower degree correction.
One more thing you need to keep in mind "MARKET NEVER MAKEs MISTAKE, PEOPLE DO."
All you have to do is analyze it correctly.
Have a good day! :)
Note
I share some of my knowledge by educational posts so the beginners & trader who are not aware of this can get to these things. learning is a ongoing process and we learn something new everyday! Hope it helped you! :') Thanks for your Appreciation! :')
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