DXY is currently struggling at a very crucial point during it's long-term uptrend direction of approximately 2 years span.Having experiencing a vertical rally throughout 2022, it ended the year in a downtrend spiral breaking Price Action structures.
This can all well be a correction phase during it's uptrend trajectory, but that is yet to be seen on what the Future holds for $DXY.
2022 will be remembered as an year of increased Feds Rate Hikes taking place one after another trying to curb inflation down, with
DXY exploding while other Financial Markets sectors shed blood like wild hogs being hunted merciless .With 2023 entering on a negative side note for
DXY, it's worth mentioning that nothing is over yet with 2022 being gone.Feds Interest Rate Hikes are yet to be decided upon on how they will act with it, will they continue or will they stop.
US has officially hit Debt Ceiling of 31Trillion US Dollar, as Secretary of Treasury Jennet Yellen stated just recently on her speech.
Unemployment statistics came better, however, the reality says otherwise with big companies employers lay offs.
On the Geo Political spectrum,
Russia-Ukraine still remains hot, with Europe trying to include Ukraine in NATO which will result on not a very pleasing place for Russia's side.
Ukraine joining NATO's allies would most definitely put so much Pressure in Russia and this will only worsen the war situation, heating it up.
We got China-Taiwan as well going on, yet not many voices are speaking about it.
Many Macro Economists are suggesting 2023 to be the year of Precious Metals, not Gold alone.
Moreover, with China's economy prospering in to their covid-19 re-opening, their New Year Holidays is being more then welcomed this year by locals, The Spring Festivals anticipation that lasts for quite some days.
Funny enough, this all comes at a time when
DXY flirts with a broken trendline support finding it as resistance, a trendline that comes from it's 82-88 lows (depending on how one views chart's technicals).With
DXY re-claiming the broken trendline, it would enter a tight triangle apex in which it will either break to the upside, or downside.Or it may not reclaim what has already been violeted and more downside is to come throughout Q1-Q2 of 2023 for $DXY.
This ween and upcoming onesare very crucial upon deciding that fate of
DXY's direction and other Financial Markets.Very interesting times ahead for $DXY.
Nothing is clear yet, so don't jump to no bias conclusion without all criteria being met .
Until the next one ;
Trade Smart,
TRADE SAFE
- Note that this is not Financial Advise !
Please do your own research and consult your Financial Advisor beofre partaking on any trading activities based on this idea.
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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.