DXY analysis

The Dollar Index DXY is still holding its uptrend even after the 1.5% slide we saw in the beginning of February. 91.70 is a reasonable target if you were to project the prior impulse from the current lows. If the USD gains momentum 92.50 area isn't too far away; remember uptrends tend to go further than we think. Buying opportunities are starting to form but I would consider it aggressive buying now. It is a good sign seeing the USD move out of the group of the 3 weakest currencies. A more conservative trader would want to see the USD move into the group of the 3 strongest currencies before considering a long. Either way DXY is in an uptrend giving the USD a bullish stance.

When considering any buy or sell always keep in mind relative strength. If you are bullish USD, pair it with a weaker currency or a currency that you think is about to get weak. This will help increase your profit potential. JPY, EUR and CHF would be the best candidates when considering going long USD at the moment. This could change, as with the current USD strength. Always keep up with the changes in relative strength. This is when trends stop and start.