Okay, so I checked the USDX just a couple of minutes ago and found this interesting setup.
On the daily timeframe, USDX is testing the previous support/resistance area and 50% Fibonacci retracement level. Stochastic is also showing a bullish divergence, making lower lows while the pair is making higher lows.
The dollar has been on a losing streak against most of its counterparts but this bullish setup makes me wonder… Will we see a comeback soon?
S&P seems staged for a rally as well… are we going to see an end of the inverse correlation between USD and indices? Or is one of the rallies going to fizzle out?
Hopefully this isn’t to much of a off topic question. When USDX goes down eur/usd goes up and vise versa?
When the USDX goes down, it means the USD is depreciating against a basket of other major currencies. So your generalization is more or less correct, assuming the EUR isn’t depreciating at the same rate or faster than the USD within a given period of time.