DXY has reached its Key Level Area.

US dollar Index has finally reached its Monthly, Weekly and Daily support area. A support area across all the higher time frames. Another reason that it is a Key level area because if look back on the previous candles, price has not been able to break that level.

So what to take note off:

Usually I like to refer to the DXY if and whenever I trade any pairs that are against the USD. (For example XAUUSD or GBPUSD). DXY is inversely correlated to them and can show signs of where price might go for the opposite pair. Why is this important for me? This helps to show me the direction the pairs are heading to. As I do not trade on trendiness and mostly lookout for key levels of resistance and support at higher timeframes, doing this is important.

But to say that it is important, this does not mean that is all I do. I also add in other technical analysis to lookout for setup opportunities in the lower timeframe after referring to higher timeframes.

Just sharing this in case anyone is looking for trade ideas.