DXY long or short - Supply Demand - Why analyzing DXY?

Hello Traders!

I can see some nice zones on the h4 timeframe. We are currently at a Support line and we are about to see a push to the upside into the Supply Zone. Now we need to watch price action in order to see in which direction we will push from this zone.

2 scenarios:
#1 push to the supply zone and then drop
#2 push to the supply zone and the the supply zone became a demand zone and we will push higher on the DXY

... but ...

Why do we need to analyze the DXY?
Actually I like to have a look on the DXY because of the Correlation. So the DXY is nice to use when we are trading XAUUSD , EURUSD , AUDUSD , GBPUSD . Usually when the DXY goes up, the mentioned pairs will go down.

That was my Idea and I hope you liked it. Please leave a LIKE if you like the content. In the comment section you can share your view and ask questions.

Thank you and we will see next time
- Darius.