FOREX Forex · Euro · Updated June 2026 · ~4 min · For TradingView desktop 3.2.1
EURUSD and the US Dollar Index (DXY): A Mirror Correlation
You can't watch EURUSD without the US Dollar Index (DXY). Because the euro is the largest weight in the DXY basket (~57.6%), EURUSD and DXY are almost mirror images — DXY up, EURUSD likely down, and vice versa.
Why near-mirror
DXY measures the dollar against a basket of currencies, and the euro is over half of it. So DXY is essentially "mostly the euro, inverted." The EURUSD-DXY correlation sits near −1 (strong negative) over the long run.
Using it to cross-check
- Want to long EURUSD? First check whether DXY is weakening in sync and breaking key support — confluence makes the signal stronger;
- EURUSD breaks out but DXY doesn't confirm (no break of the matching resistance): beware a fake-out;
- When DXY hits major support/resistance, EURUSD's inverse level often reacts at the same time.
Tip: overlay EURUSD and DXY, or use linked dual charts. DXY is also driven by other currencies (yen, pound, etc.), so it isn't the pure inverse of the euro, and correlation can loosen briefly in extremes.