After all this information you are probably wondering – why do we need to learn about USDX in the first place? Where can it possibly be of use to us? Well, I can tell you that as forex traders you are going to find USDX a very important and a very popular tool.
Do you notice anything common between these two charts?
- If USD is the base currency in the couple, USDX and the pair chart are going to move the same direction.
- If USD is the secondary currency, USDX and the pair are going to move in opposite directions.