Perhaps someone could help me here. I am trying to understand USDX and EURUSD divergence. On the daily timeframe charts below there appears to be a divergence. Looking at the EURUSD in isolation I was looking for a retracement before further advances. Is this corroborated by the divergence? Please help :-)
The way I am reading this is that the USDX is more important and therefore my initial reading of further advances for the EURUSD my be wrong. If the picture for the USDX is beginning to look more bullish then it means a larger decline is more probable.
My confusing myself and should just switch everything off for a few weeks. ;-)
Any help gratefully received.