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  1. #1
    Legendry Member Michael Hodges's Avatar

    Wink The US Dollar Index Trading Tool - It's US against the world !!!

    Why the US Dollar Index Does Not Suck as a Trading Tool

    Once the fundamental bases of the USD’s movements are understood, the USDX code is as good as cracked. Traders can now use this knowledge to pull a lot of possible trades in the binary options market. Traders will be able to understand that the relationship between crude oil and the USD is an inverse one, and be able to trade all manner of crude oil-based binary options trades, using the movement of the US Dollar Index as a guide.
    The dollar is more than a single currency. It is the world's base currency in many regards. Most commodities and international transactions are denominated in dollars making it the worlds most important currency at this time. Understanding the dollar and the dollar index is very helpful in understanding the movements of things like oil and gold, which are very sensitive to dollar values and exchange rates around the world. The first step is to know which currencies are part of the index and then move on to the individual central banks and how their policies are affecting rates today.

    We have a great article in the Binary Options School that explains in more detail how the dollar and the dollar index can be used as a tool for binary options traders. The Dollar Index Trading Tool.

    The US Dollar index is a measure of the performance of the US Dollar against a basket of six currencies. These currencies are:

    • Euro
    • Japanese Yen
    • British Pound
    • Swiss Franc
    • Swedish Krona
    • Canadian Dollar
    Last edited by Michael Hodges; 04-09-2014 at 04:59 PM. Reason: forgot the link

  2. #2
    Veteran Member hchandra's Avatar
    Love it to look at dollar index to get a clue where price heading too for long term.
    In the past its really hard to get the chart, but now its really easy to get access to USDX through websites, brokers.
    But one thing to note, sometime correlation between dollar and other instrument can change,
    sometime dollar can be strong and no movement at all in oil or gold or other instruments.

  3. #3
    Legendry Member Michael Hodges's Avatar
    today the index fell to a multi week low and the bottom of a 7 month trading range.

  4. #4
    Veteran Member hchandra's Avatar
    At least it still above the green demand area

    Hard to decide what to do here except for Long dollar,

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