I always have a look at this index when trading against the dollar. This give you the overall picture of the US Dollar against all other currency.
Short term it looks like the dollar has broken a short term trend line which has led to the test of the neckline on a head and shoulders pattern which is pretty big. It's currently bounced of that neck line as of 3rd feb.
So if your betting on the dollar to be the stronger pair then be careful as if that neckline support breaks then the head and shoulders top comes into play and which could mean the dollar falls a lot lower against most currency .
So one to watch over the coming days.
Close up view
If you look closely there is another head and shoulder formation on the close up chart as well. So there's a head and shoulders
within a head and shoulders. So one to watch for the short term. This may well bounce from the neckline but you should be aware
Of the formation .