"DXY on the Rise: A Bullish Outlook"
Updated
Summary of DXY: In the past, the US dollar index (DXY) experienced a growth spurt from expansionary monetary policy and rising interest rates, while bank failures eroded investor confidence and caused the dollar to fall in global markets.
What will be the future of DXY in the market?
Objective analysis of prevailing economic conditions is very important. Despite continued efforts to fight inflation through high interest rates, it is clear that the desired reduction has not materialized significantly. In addition, there is a lack of investor confidence in the stability of the dollar. However, it is important to acknowledge that potential federal government interventions, such as a shift in monetary policy toward a more accommodative fiscal policy approach, could address these challenges. This may include interest rate cuts in the coming months to stimulate economic growth. In addition, implementing strategies such as tax cuts for investors and providing comprehensive financial guidance can help strengthen the value of the dollar in the financial market. However, there is an acknowledgment of the possibility of an economic recession and a possible further decline of the dollar in the market
Fundamental Analysis:
I have done a fundamental analysis of the DXY (US Dollar Index) and have seen several positive indicators. First, the unemployment rate has decreased by 0.1 percent compared to the previous month, which indicates a strengthening labor market. In addition, the inflation rate has decreased by 0.1 percent, which indicates the potential stability of prices and a favorable environment for economic growth. In addition, there are signs of relatively expansionary policies in the manufacturing sector, which usually stimulate economic activity and contribute to a strong currency. Considering the relatively expansionary factors in the US market and considering these factors, it seems that the DXY may experience an upward movement in the short term.
Technical Analysis:
Based on technical analysis, the DXY price has recently touched several major support levels, indicating a potential shift in market sentiment. A bullish imbalance has been observed as the price made a strong upward move towards the next resistance level. Notably, the price has successfully broken out above this resistance, suggesting the possibility of further bullish movements. To confirm this bullish outlook, it is important for the price to consolidate above the key level of 102.500. If this consolidation occurs, it could pave the way for the price to continue its upward trajectory towards the next resistances.
Personal potential scenario: there is a possibility that the price may reach a higher high (HH) around 105.600 and potentially form a double bottom pattern. While this is currently a theoretical projection, it is worth noting for future reference and monitoring. Technical analysis provides valuable insights, but it is essential to consider other factors and indicators to validate and refine these scenarios.
DXY
What will be the future of DXY in the market?
Objective analysis of prevailing economic conditions is very important. Despite continued efforts to fight inflation through high interest rates, it is clear that the desired reduction has not materialized significantly. In addition, there is a lack of investor confidence in the stability of the dollar. However, it is important to acknowledge that potential federal government interventions, such as a shift in monetary policy toward a more accommodative fiscal policy approach, could address these challenges. This may include interest rate cuts in the coming months to stimulate economic growth. In addition, implementing strategies such as tax cuts for investors and providing comprehensive financial guidance can help strengthen the value of the dollar in the financial market. However, there is an acknowledgment of the possibility of an economic recession and a possible further decline of the dollar in the market
Fundamental Analysis:
I have done a fundamental analysis of the DXY (US Dollar Index) and have seen several positive indicators. First, the unemployment rate has decreased by 0.1 percent compared to the previous month, which indicates a strengthening labor market. In addition, the inflation rate has decreased by 0.1 percent, which indicates the potential stability of prices and a favorable environment for economic growth. In addition, there are signs of relatively expansionary policies in the manufacturing sector, which usually stimulate economic activity and contribute to a strong currency. Considering the relatively expansionary factors in the US market and considering these factors, it seems that the DXY may experience an upward movement in the short term.
Technical Analysis:
Based on technical analysis, the DXY price has recently touched several major support levels, indicating a potential shift in market sentiment. A bullish imbalance has been observed as the price made a strong upward move towards the next resistance level. Notably, the price has successfully broken out above this resistance, suggesting the possibility of further bullish movements. To confirm this bullish outlook, it is important for the price to consolidate above the key level of 102.500. If this consolidation occurs, it could pave the way for the price to continue its upward trajectory towards the next resistances.
Personal potential scenario: there is a possibility that the price may reach a higher high (HH) around 105.600 and potentially form a double bottom pattern. While this is currently a theoretical projection, it is worth noting for future reference and monitoring. Technical analysis provides valuable insights, but it is essential to consider other factors and indicators to validate and refine these scenarios.
DXY Note
one of the target reached, price should following the up trendNote
I would suggest refraining from trading major currencies extensively until the Federal Reserve's next plan is determined...Note
This week holds significant implications for the value of the USD, with three distinct scenarios shaping its performance.Firstly, if the Federal Reserve decides to hold interest rates steady, it is anticipated that the USD may experience a decline in value within the market. This outcome is based on the expectation that a lack of rate increase would reduce the appeal of holding USD assets, potentially leading to a decrease in demand.
In the second scenario, if the Federal Reserve adopts a hawkish stance despite industrial contraction, while other leading indicators continue to expand, the USD's performance becomes less predictable. Although the country has not yet entered a recession, this combination of factors introduces uncertainty. The USD's value might fluctuate, influenced by investors' perceptions of the Fed's decision to prioritize a tighter monetary policy despite ongoing economic challenges.
Lastly, if the Federal Reserve were to cut interest rates, it could potentially trigger a redistribution of the USD within the market. However, the likelihood of this scenario occurring at the present time is low. Such a decision would likely be driven by specific economic circumstances and policy objectives. Nonetheless, if rate cuts were implemented, they could impact the USD's performance, potentially leading to a decrease in value as investors reassess their holdings and seek higher-yielding alternatives.
Note
I would suggest refraining from trading major currencies extensively until the Federal Reserve's next plan is determined...
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.