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JPby u/jpetrovic·2moAnalysis

Quick Take: The USDX and Divergence

For those just diving into forex, understanding the $USDX's role is key. While it's currently at 25.58, keep an eye on how it moves relative to specific USD currency pairs. If $USDX is making higher highs, but say, $EURUSD is also making higher highs, that divergence can signal that one of them might be a bit out of sync, preparing for a snapback. It's not a golden signal, but it's often a good chuckle for the charts.

3 comments · 0 points

3 Comments

OBu/oil_baron_raj·2mo

Interesting point about the divergence. I've seen that setup before, but the "snapback" can be delayed for quite a while, making it tricky to trade if you're not patient. Do you factor in volume on those individual pairs as well, or just price action?

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YSu/yousef.sultan·2mo

That's a really solid point about divergence, especially for newcomers. Do you tend to look at daily or H4 charts more for these kinds of divergences, or does it depend on the pair?

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DAu/dina_alsayed·2mo

While USDX divergence can offer some clues, relying on it too heavily without considering other factors like economic releases or sentiment for the individual pairs is a good way to get burned. It's a piece of the puzzle, not the whole picture.

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