I would not directly trade DX. Too many issues that affect price. Mainly the Euro which is about 57% of the Index. One comment good or bad out of any key European politician and DX automatically moves inverse. And on the flip side much the same thing on the U.S.side. So while DX will trend notice how choppy and short term the swings are. Perfect market to get stopped out of. Better to trade the Euro or other currencies. I pay attention to DX as most markets trade inverse to it which is worth paying attention to when at support or resistance or just bullish or bearish short term. Improves the odds of success on an inverse market trade. Seasonal trends are also helpful especially when strong and consistent year after year. Note over a month ago I posted about DX's strong seasonal trend to selloff in December. And January into February is the strongest time of the year for DX as far as seasonal trends go. There are fundamental reasons for the Dec selloff and Jan buy back but I don't spend much time on them as it is what it is and I just accept that. Money does come back into DX in Jan/Feb historically. So looking at inverse markets to rally would have better odds of success overall from my personal point of view. And the media will always explain it away when it happens. All I do is look at what the overall odds are and what has a consistent track record. I try not to think too much about it and just accept what is. Early January can be a highly volatile time in the markets and unless you are into riding bucking broncos I'd avoid it unless you have deep pockets and can afford wide stops or trade options with a lot of time on them. Especially now with recent events in the U.S. that could see a lot of traders/investors react and overreact to these unfolding political/financial events. Here is a link to one site that shows a 20 year seasonal trend for DX. Not the holy grail but I wouldn't ignore it especially in Dec/Jan regarding DX. A smoother way to trade DX or the Euro is with ETFs. UUP for DX and FXE for the Euro. I still wouldn't trade DX directly anyway but the ETFs can reduce risk in many cases and can be easier to sleep at night without being a futures contract with all the issues that causes. And ETFs can be traded even in a tax exempt retirement account if you don't wish to use up cash in a futures account. That is how I see it but there are lots of ways to skin a cat.