US dollar about to collapse
DXY FREE UPDATE
- Yello!
Let's make everything crystal clear and understand a bit better what is going on in the market right now. Let's talk about the Dollar Index, ladies and gentlemen
This index (DXY) basically measures the dollar's strength against all other currencies (FIAT). And to understand the context, please refresh your mind and read our update about DXY from February this year click here and read it now.
Since our last update from February, DXY respects our support zone perfectly and keeps bouncing off it (keep in mind that the more often support or resistance is tested, the weaker it gets). Moreover, over the last few weeks, the DXY is showing some continued strength, primarily due to the FEDS announcement to tighten rates by 2023. The US government tries hard to push away the financial crisis and colossal inflation. But doing these things will just make it worse in the future.
However, it indicates that the US dollar is starting to regain strength in relation to other Fiat currencies at the moment.
And what about Bitcoin? Whilst there may be no direct connection between the DXY and Bitcoin, the correlation on short/mid-term price action is intense and always have been.
To understand better the correlation: Normally, we see BTC gaining strength while the dollar weakens; similarly, we are now seeing a decline in BTC due to the dollar regaining strength. DXY is approaching a local resistance right now, which can send it back to the support. That would be logical as BTC is trading at support right now. But if there will be some other positive news by FED actions, we expect DXY to break the resistance, which would mean a further upside for Dollar Index. We are preparing for some huge volatility soon. Make sure you have a plan and a great strategy going into this week.
Read our previous DXY update
We wish you a happy, safe Monday,
your ParadiseTeam
- Yello!
Let's make everything crystal clear and understand a bit better what is going on in the market right now. Let's talk about the Dollar Index, ladies and gentlemen
This index (DXY) basically measures the dollar's strength against all other currencies (FIAT). And to understand the context, please refresh your mind and read our update about DXY from February this year click here and read it now.
Since our last update from February, DXY respects our support zone perfectly and keeps bouncing off it (keep in mind that the more often support or resistance is tested, the weaker it gets). Moreover, over the last few weeks, the DXY is showing some continued strength, primarily due to the FEDS announcement to tighten rates by 2023. The US government tries hard to push away the financial crisis and colossal inflation. But doing these things will just make it worse in the future.
However, it indicates that the US dollar is starting to regain strength in relation to other Fiat currencies at the moment.
And what about Bitcoin? Whilst there may be no direct connection between the DXY and Bitcoin, the correlation on short/mid-term price action is intense and always have been.
To understand better the correlation: Normally, we see BTC gaining strength while the dollar weakens; similarly, we are now seeing a decline in BTC due to the dollar regaining strength. DXY is approaching a local resistance right now, which can send it back to the support. That would be logical as BTC is trading at support right now. But if there will be some other positive news by FED actions, we expect DXY to break the resistance, which would mean a further upside for Dollar Index. We are preparing for some huge volatility soon. Make sure you have a plan and a great strategy going into this week.
Read our previous DXY update
We wish you a happy, safe Monday,
your ParadiseTeam
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