Fundamental Analysis:
The
DXY has weakened as recent data shows GDP growth slowing to 2.4%, inflation cooling to 2.4%, and unemployment rising to 4.2%, increasing expectations of potential Fed rate cuts despite rates holding at 4.5%. Investor confidence has also dropped, with consumer sentiment at 50.8, and the trade deficit still wide at $123B, signaling softer economic momentum.
📉 Projection: Continued soft data could keep the dollar under pressure unless the Fed reinforces a hawkish stance.
⚠️ Risk Level: A strong upside surprise in inflation or employment data could reverse sentiment and push DXY higher abruptly.
Technical Analysis:
DXY is currently hovering around 99.65, just above a key support zone near 99.00 (PWL), where a potential liquidity grab may occur. The RSI is near 30, signaling oversold conditions, which often precede a short-term bounce.
📈 Projection: If price holds above 99.00, a rebound toward the 100.91 gap and possibly 103.19 (PWH) is likely.
⚠️ Risk Level: A clean break below 99.00 would invalidate the bullish setup and open the way to 97.50–98.00.
The
DXY has weakened as recent data shows GDP growth slowing to 2.4%, inflation cooling to 2.4%, and unemployment rising to 4.2%, increasing expectations of potential Fed rate cuts despite rates holding at 4.5%. Investor confidence has also dropped, with consumer sentiment at 50.8, and the trade deficit still wide at $123B, signaling softer economic momentum.📉 Projection: Continued soft data could keep the dollar under pressure unless the Fed reinforces a hawkish stance.
⚠️ Risk Level: A strong upside surprise in inflation or employment data could reverse sentiment and push DXY higher abruptly.
Technical Analysis:
DXY is currently hovering around 99.65, just above a key support zone near 99.00 (PWL), where a potential liquidity grab may occur. The RSI is near 30, signaling oversold conditions, which often precede a short-term bounce.
📈 Projection: If price holds above 99.00, a rebound toward the 100.91 gap and possibly 103.19 (PWH) is likely.
⚠️ Risk Level: A clean break below 99.00 would invalidate the bullish setup and open the way to 97.50–98.00.
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.
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.