Dollar Index(DXY) Rebounds from Key Support–Is a New High Coming
hello guys.
Let's see what happened for us index and what will happen:
Uptrend Support:
The price has been respecting a long-term ascending trendline since 2011, indicating a strong bullish structure.
Recent price action suggests that the index retested this trendline and bounced off it.
Key Resistance & Breakout Potential:
The index is in a consolidation phase after reaching a local high.
If the price holds above the trendline and breaks the previous high (~13,250-13,400), it could trigger further upside movement.
The next potential target is near 13,500-13,800 based on historical price action and Fibonacci extensions.
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Possible Scenario:
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Consequences of This Move:
For USD Strength:
A bullish continuation in the Dollar Index means a stronger USD, which could negatively impact commodities (gold, oil) and emerging market currencies.
Forex pairs like EUR/USD and GBP/USD could decline as the USD gains strength.
For Global Markets:
A weaker DXY (if the support breaks) would typically support equity markets and commodities like gold and Bitcoin, as a weaker dollar makes them more attractive.
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Conclusion:
The chart suggests bullish momentum, but confirmation is needed with a breakout above 13,250-13,400.
As long as the price respects the trendline and Fibonacci support, the uptrend remains intact.
Keep an eye on macroeconomic events (e.g., Fed rate decisions, inflation data), as they can impact this movement significantly.
Let's see what happened for us index and what will happen:
Uptrend Support:
The price has been respecting a long-term ascending trendline since 2011, indicating a strong bullish structure.
Recent price action suggests that the index retested this trendline and bounced off it.
Key Resistance & Breakout Potential:
The index is in a consolidation phase after reaching a local high.
If the price holds above the trendline and breaks the previous high (~13,250-13,400), it could trigger further upside movement.
The next potential target is near 13,500-13,800 based on historical price action and Fibonacci extensions.
-------------------------------------------------
Possible Scenario:
- Bullish Case: If the price holds above the trendline and breaks the current range resistance, it could continue toward new highs.
- Bearish Case: A breakdown below the 12,800 support level could lead to a deeper correction toward 12,400-12,000.
-------------------------------------------------
Consequences of This Move:
For USD Strength:
A bullish continuation in the Dollar Index means a stronger USD, which could negatively impact commodities (gold, oil) and emerging market currencies.
Forex pairs like EUR/USD and GBP/USD could decline as the USD gains strength.
For Global Markets:
A weaker DXY (if the support breaks) would typically support equity markets and commodities like gold and Bitcoin, as a weaker dollar makes them more attractive.
-------------------------------------------------
Conclusion:
The chart suggests bullish momentum, but confirmation is needed with a breakout above 13,250-13,400.
As long as the price respects the trendline and Fibonacci support, the uptrend remains intact.
Keep an eye on macroeconomic events (e.g., Fed rate decisions, inflation data), as they can impact this movement significantly.
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Telegram: t.me/melikatrader94
Forex: t.me/melikatrader94GoldForex
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.
👉 My recommended exchange(you can get up to $5050 bonuses): lbank.one/join/uF7u10M
____
👉 My recommended broker: bit.ly/HYMCMELI
____
Telegram: t.me/melikatrader94
Forex: t.me/melikatrader94GoldForex
____
👉 My recommended broker: bit.ly/HYMCMELI
____
Telegram: t.me/melikatrader94
Forex: t.me/melikatrader94GoldForex
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.