In this post, we have helped you to take your Forex Trading to the Next Level through our professional approach on how to Trade EURO Dollar (EUR/USD) by having an eye on US Dollar Index (DX). Let us first explain, what is US Dollar Index (DX).  

We have a concept of the US Dollar Index or US Dollar Basket in foreign exchange trading. This Basket is a composite index comprises of 6 currency pairs which are traded with US Dollar directly. These 6 currency pairs are as below:
EUR/USD (Euro), USD/JPY (Yen), GBP/USD (Sterling), USD/CHF (Swissy), USD/CAD (Loonie) and USD/SEK (Swedish Krona against US Dollar).
US Dollar index is an important instrument to know and look for if you are serious about your forex trading. You can also trade this US Dollar index as an instrument in some broker platform. US Dollar index can be represented graphically as below:

NP-Financials-US-Dollar-Index

Now the question is how you can take your Forex Trading to the Next Level through our professional approach on how to Trade EURO Dollar (EUR/USD) by having an eye on US Dollar Index (DX). This is illustrated in the following two daily charts. The first chart is for EUR/USD, in which we have plotted a 200-period exponential moving average (EMA) along with the price bars of EUR/USD currency pair as shown below. One way to consider bullish and bearish BIAS of a tradeable instrument is to observe whether the price is plotting above its 200-period exponential moving average or below its 200-period exponential moving average respectively. Once we have identified the BIAS then only one thing is left out to observe and trade the Bounce or Breakout of the tradeable instrument from its 200-period exponential moving average.

As we always say, that Price can and will do whatever it does. But to stack the probability in our favour, we can combine the movements of EUR/USD and US Dollar Index (DX). Below chart is for EUR/USD with the 200 EMA in which we can observe that EURO price bars actually did not bounce from the all-important 200 EMA on 10.01.2019 and 31.01.2019 as shown below:

Forex-Trading-NP-Financials-EUR-USD-daily-Chart-January-2019

After observing that EURO price bars actually did not bounce from the all-important 200 EMA on 10.01.2019 and 31.01.2019 we now go and refer to US Dollar Index for the same 2 said dates and see that US Dollar Index has actually bounced from the all-important 200 EMA on 10.01.2019 and 31.01.2019 as shown below:

Forex-Trading-NP-Financials-DX-daily-Chart-January-2019

EUR/USD and US Dollar Index, when put together, gave us the additional confirmation on how to take the 2 bounced trades for EUR/USD from the all-important 200 EMA on 10.01.2019 and 31.01.2019.

Now you must be wondering how you can take your Forex Trading to the Next Level through all our professional approaches. To take your Forex Trading to the Next Level through all our professional approaches and to find out the answers to all your Trading related queries, please contact us at 03 9566 7275 and book your FREE discussion session for 30 minutes at Level 3, 2 Brandon Park Drive, Wheelers Hill, Victoria 3150.

Now you can learn to trade Forex Pairs with us to explore the possibility of earning passive income keeping your day job.

Our Proprietary Forex Trading Strategy which work will guide you through every step of your trading in Forex Pairs and explore the possibility of earning extra income. Learn what all other Forex Currency Pairs we are Trading in our Forex Trading Asset Class. Develop yourself as a professional trader capable of capturing second income in the future with us.

Please click on the Contact Us link: Goo.Gl/2SRZoG

Call us on +61 3 9566 7275
email: info@npfinancials.com.au

Related Links:

Learn Basics of Forex Trading with Partha Banerjee of N P Financials, the Prop Trading Firm at Melbourne

On completion of the “Basics of Trading” course, You will develop an In-depth understanding of Fundamentals factors moving Markets. You will be able to clearly understand the Market Jargon e.g. Swaps, Spread, Slippage, Margin, Leverage, Tom-Next etc. You will also know more about why we are saying, “Aussie is following our way”.

Start your Forex Trading with Partha Banerjee of N P Financials by doing one-on-one coaching

Learn Trading from our A full-time Professional Trader. This is a step by step hand holding program designed keeping in mind your learning progression. You will also know more about why we are saying, “Aussie is following our way”.

Learn the Foundation of Forex Trading with Partha Banerjee of N P Financials, the Prop Trading Firm at Melbourne

A full-time professional trader from NPF (Professional Proprietary Trading firm) will be your own personal coach for 3 months. It will give you twelve, one-on-one coaching sessions. You will be attending one monthly Seminar. You will also know more about why we are saying, “Aussie is following our way”.

Take advantage of our Proprietary Forex Mentorship Program with Partha Banerjee of N P Financials, the Prop Trading Firm at Melbourne

A full-time professional trader from N P Financials will be your own personal coach for 6 months. You will be introduced to our Proprietary Trading Edge. It will give you twenty-four, one-on-one coaching sessions. You will also know more about why we are saying, “Aussie is following our way”.

Advance your Forex Trading Progression with Partha Banerjee of N P Financials, the Prop Trading Firm at Melbourne

A full-time professional trader from N P Financials will be your own personal coach for 9 months. You will be introduced to our Proprietary Trading Edges. You will also know more about why we are saying, “Aussie is following our way”.

Develop yourself as a Professional Forex Trader with Partha Banerjee of N P Financials, the Prop Trading Firm at Melbourne

A full-time professional trader from N P Financials will be your own personal coach for 12 months. You will be introduced to our Proprietary Trading Edges. You will also know more about why we are saying, “Aussie is following our way”.

Learn how to Code in Trading with Partha Banerjee of N P Financials, the Prop Trading Firm at Melbourne

A full-time professional trader from N P Financials will be your own personal coach for 3-6 months. You will be trained on how to learn the Market Programming Language.

Develop your own Market Scanning System with Partha Banerjee of N P Financials, the Prop Trading Firm at Melbourne

A full-time professional trader from NPF will be your own personal coach for 3-6 months. You will be trained on how to Develop your Market Scanning Edge.

Develop your own Trading System with Partha Banerjee of N P Financials, the Prop Trading Firm at Melbourne

A full-time professional trader from NPF will be your own personal coach for 3-6 months. You will be trained on how to Build your Trading Edge.

Take advantage of our Proprietary One day Forex Training Courses with Partha Banerjee of N P Financials, the Prop Trading Firm at Melbourne

Take Advantage of On-Demand Learning from popular One Day Courses. Identify Correct and Relevant Market Reversals through advanced Candlestick Charting. Understand Market Evaluation through our specialized Fibonacci Techniques. Understand correct Price Plot Patterns.