This is an equally weighted USD index and because the EUR has less of an impacted you will see the slight differences between this and the DXY. The index has been basing over the past several days and may soon try to move out of that base. The daily trend has been down for some time now and the September seasonal for the Dollar calls for continued weakness pushing the probabilities, in my book, of a drop higher than a rally. Looking for a continuation of Dollar weakness unless price can breakout of the descending channel. If a breakout occurs, the USD might be looking for a larger retracement and a reassessment of the chart will be needed. Looking to find good trading opportunities to sell dollars against stronger counterparts. My relative analysis says to watch NZD, AUD, GBP, CAD as strong counterparts to USD.
Check out my relative strength analysis I post everyday on twitter @WhosTrend
