DXY contains many advantages in relation to the USD/CHF relationship. No longer are monthly averages required to view DXY on a long-term basis. This not only cuts much work to monthly average views but DXY from the 92.24 close may now insert USD/CHF exchange rates for a longer-term DXY view using less numbers to enter.
DXY advantage to markets is as a forecast to trade and predict perfectly not only other exchange rates but stock markets, VIX, commodities and all financial instruments. USD/CHF adds the extra bonus as a validation to forecasts. DXY adds not only an extra trade for interested but a solid forecast so to possibly double lots added to trades.
Interesting move for the SNB to Peg USD/CHF to DXY but not surprising as the world of trading from every trade and export are all USD dependent. This means every nation on the planet sets exchange and interest rates as close to USD as nation markets allow. Its actually impossible not to happen to offer the degree of USD dependency as USD is the trigger and driver to world financial markets. USD determines and forecasts every financial price.
In today’s markets, far less interest rate maturities trade in comparison to pre 2016 and 1998 upon EUR introduction. By comparison of nation interest rates to FED and USD is seen not much difference to interest rates. From a globalist perspective, the world of markets and trading grew much closer.
The change is not USD, DXY or FED interest rates but a closer alignment from world nations to USD. To some degree, this is a disadvantage to other nations and issues to sovereignty as an interest rate change by any nation forces a chain reaction to all nation interest rate adjustments. And irrelevant to whether a particular nation is ready or can handle the adjustment.
USD/CHF begins the week overbought and this means DXY is also overbought using USD/CHF exchange rates.
USD/CHF from a day trade, 5 vital numbers apply to USD/CHF as follows: 0.9177, 0.9191, 0.9202, 0.9247 and 0.9271. USD/CHF today won’t trade 0.9271 nor 0.9247. Focus on shorts to target lower to 0.9177.
DXY day trade, 5 vital numbers apply as follows: 91.77, 91.91, 91.99, 92.47, 92.71.
The only difference to day trades is 91.99 DXY to 0.9202 to USD/CHF. But markets are operating on uneven numbers primarily for day trades. So no real difference.
Weekly, both DXY and USD/CHF target 0.9177 and 0.91.77. The best USD/CHF and DXY will trade from weeklies is 0.9164 and 0.9148 and DXY 91.64 and 91.48.