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Dixie

DIXIE looking strong for the USD to 107 - WHat does this mean?Cup and Handle has formed on the US Dollar Index. This took place after the break out of the downside. The latest US jobs report for Friday indicated a significant surge in employment, outpacing the predictions of economists. The economy saw the addition of 353,000 seasonally adjusted jobs in the last month, marking the highest increase in a year. Also with companies on the Tech side beating earnings and with Meta closing up over 20%. Seems like confidence is overflowing in US and investors are piling in for the US dollar. We have technically a bull trend confirmed too with 7>21 Price>200 Target 106 SO what could this mean for the DIXIE? For stock markets, a stronger US dollar can have mixed effects. On one hand, it may signal economic strength and attract investment into US assets, including equities, especially in sectors benefiting from a robust economy. On the other hand, a stronger dollar can pressure multinational companies' overseas earnings when repatriated, potentially dampening investor sentiment towards those stocks. The overall impact would depend on balancing these dynamics. Correlations aren't what they seem like in the past thanks to the algorithm, so with the US upside one will need to overlay the markets and see how they react. As things stand, the USD is going up. Stick with the trend until then.
TVC:DXYLong
by Timonrosso
DXY Major reversal Good day traders and investors, Well, it looks like the dollar has had a major reversal just as expected and right on time. I have been expecting for a couple months now that something big is to be expected by mid September to the latest mid October as the cycle pertains too. The DXY hit the .5 on the fib which is generally a big reversal area, and boy did it reject. It looks like gravestone doji has formed as well. This is stock and crypto positive. What was the news at same time? Surprise!!! More war, now with Israel the "holy Land" In the seeks to follow look for the dollar to collapse as assets rise.
TVC:DXYShort
by WeAreSat0shi
South African rand in trouble - Next target R21 :(Inv H&S has formed on the USD/ZAR since 6 June 2023. The price has recently broken above the neckine, showing the US dollar is poised for upside. The DIXIE (US Dollar Index) is also showing upside to come. 7>21>200 and confirms the US dollar is going up. RSI>50 - Bullish First target is R21.00 ABOUT THE DIXIE: HOW IT’S CALCULATED The USDX is calculated by the Federal Reserve Bank of New York and is based on the exchange rates of six major currencies: the euro (EUR) – Accounts for 57.6% - ,Japanese yen (JPY), British pound (GBP), Canadian dollar (CAD), Swedish krona ( SEK ), and Swiss franc (CHF) .
Long
by Timonrosso
Crunch time for DXY - Friday will be a big day!I never trade DXY but I always have a tab open, I find this really useful when trading many pairs. My current take on the Fed and the US economy is: They were the first to respond to growing inflation Their tightening has led to interest rates of 5.5% (only matched by BNZ) They've hawkishly indicated more hike(s) Consumer confidence numbers this week were strong, in spite of this Jobless claims continue to beat target GDP for June smashed target (2.4% up from 2%, despite forecasted reduction to 1.8%) Inflation is now 2.97%, really low compared to others It's looking very much like a soft landing Whilst at the same time: ECB interest rate held at 4.25% with inflation at 6.4% BoJ interest rate held at -0.1% with inflation at 3.3% Swiss inflation is 1.7% with interest rates at 1.75% BOA interest rate held at 4.1% with inflation at 6% BNZ interest rate held at 5.5% with inflation 6.7% BoE decision this week, currently 5%, +0.25% priced in, but Dovish talk and highest inflation (7.95%) So, I can't fail to see super positive fundamentals from the USA, in comparison with almost everyone else? I also think that because they moved fast and got a grip of things, unlike anyone else, they can still afford to hike without screwing their economy, unlike BoE and BNZ for instance who I believe are heading into big recessions - high interest will get to a point where it's as harmful as high inflation and will make the situation worse for the economy. That all said, until the news this week, DXY has been on huge downtrend from it's highs, and it will take something special to break through the descending trendline around 102. If it breaks this could be the start of a reversal if positively retested. Like I say I don't trade DXY, but I've learned to always have it in my sights, you have to be mindful of big DXY shifts as it has an impact on many other crosses (not just USD ones). For instance the big move this week with the Thursday data had a huge effect across the board, fortunately I was expecting it... We have a big indecision doji candle for Friday, however, off the back of last week being positive for the USD and negative for other currencies that make up the basket, I do think the dollar will court the trendline for this week, and we'll probably see a false breakout! On the 4hr I'm seeing short term bullishness, bounce up off the 50% fib for the last bullish move: Whatever, Friday will be a huge day, with NFP and Average Earnings released - I'm expecting DXY will have dropped back a bit by then, I'm expecting good data on Friday, but I don't think it will matter, good or bad it will lure us into a false sense of security and DXY will bounce down, hard with bad data, less so with good data, but regardless - I can't see it punching through on this juncture. As always this is just an opinion, let's see what happens!
PEPPERSTONE:USDXShort
by Finchcliffe
DXY: Will the rising dynamic trendline hold?Tough times for the USD; the market didn't buy Powell's hawkish attempt, ECB went as expected and Dixie has plummeted today. I do think the USD crosses will get a breather retracement tomorrow, so we could see a bounce off the rising trendline on HTF's. If we break the wedge to the upside then this could lead to a higher low and could signal a reversal with a higher high. If the trendline is broken, and we then go on to make a new low then I think the USD will continue to struggle, what with the ECB and BOE continuing to hike, and showing some good data. Watching and waiting...
TVC:DXY
by Finchcliffe
US DOLLAR INDEX plus CORRELATIONSDXY — RESISTANCE (4H) ✍️ Several things have led to the current success of the DXY: (1) The Bold Way the Federal Reserve Handles Money Interest rates were raised four times by the Fed in 2022, and this is expected to happen again in 2023. Because of this, buyers are more interested in the US dollar because it has higher interest rates than other currencies. (2) The Conflict in Ukraine Investors have moved away from risky investments like stocks and commodities and toward the US dollar, which is seen as a "safe haven" currency. (3) The Sentiment of the Economy People think that the US economy will grow more slowly in 2023 than it did in 2022. This could make fewer people want to buy US goods and services, which could cause the US dollar to fall. (4) A Global Recession The global economy is being pushed around by things like rising prices, problems in the supply chain, and the ongoing situation in Ukraine. These problems could lead to an economic slowdown, which would hurt the value of the US dollar. 🤔 That being said, it's possible that Price Action will respect Resistance @ 1.0255 (4H), which would make the following pairs go up in our favor: AUDUSD 📈 EURUSD 📈 NZDUSD 📈 GBPUSD 📈
TVC:DXYShort
by ProfessorCEWard
DXY-- Last trading attempt approaching Friday's openPlease take a look, enjoy, and criticize the last few postings I've made regarding the DXY this week. Traders know there is not much to say. This truly is a beautiful game we play. A never ending game, at that. I'm still trying to find my footing, my balance, if you will, on the TV platform. Who has a question? Who wants to discuss? My main studies have been on Fibonacci levels, general/typical market structure, and, of course, the infamous left-wing news power-structure and how it affects participant sentiment. Go long, baby. He's about to throw it. Just my opinion. "Keep it simple, stupid." As always, happy trading, and good luck!
TVC:DXY
by Bobbyusesfib
The correlation between US Interest Rates and The US Dollar (DXYInterest rates and USD strength are positively correlated. An increase in US interest rates will typically result in a strengthening of the USD. The reason is... Foreign investors tend to flock to US assets, such as bonds and fixed bank rates for higher returns. Higher demand for US assets drives up their price, and as a result, the USD strengthens. As for the relationship between USD strength and US stock market prices, it is more complex and can have both positive and negative effects. On one hand, a strong USD can make US exports less competitive, reducing demand and potentially leading to a decrease in corporate profits. This can weigh on stock prices. On the other hand, a strong USD can attract foreign investment into US stocks, driving up demand and prices. There are other reasons for the correlation such as: Interest rate differentials When interest rates in one country are higher than in another, capital tends to flow to the country with the higher interest rates. This results in an increase in demand for the currency of the country with higher interest rates, strengthening its currency i.e US Dollar. Inflation expectations Interest rates are also closely linked to inflation expectations. When interest rates rise, it is generally expected that inflation will rise too, which makes the currency more attractive to investors. Trade flows The USD is the currency used in most international trade transactions, and as a result, changes in trade flows can have a significant impact on the value of the USD.
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ECONOMICS:USINTREducation
by Timonrosso
6
UPDATE: DIXIE still on its way down to 96.40Since September 2022, the DIXIE has been coming down on a strong bear trend. When this happens, the US Dollar weakens and many of the other currencies strengthen. Hence you can see the EUR/USD taking off for the first time in months... Anyway, technically the DIXIE is still showing more downside to come. Technically, the price remains below 200SMA (Black Line) which turned the background RED. Second, the RSI has remained below the 50 mark, which is why the background remains red - Bearish... Thirdly, there is a strong down channel which the price is riding down. My first target for the Dixie remains at is 96.40. Trade well, live free.. Timon (Financial trader since 2003)
TVC:DXYShort
by Timonrosso
DXY is about to rip all the markets apartThat green line is a 22 year resistance and we broke it recently. What happens when a level is broken and bullishly retested?? Well, it usually reacts in that trend. And the trend for DXY is very bullish. More bullish than we have seen since the 1980’s. This is an opportunity of a lifetime. You can’t really trade DXY, but this means all stocks, cryptos, and other markets that store your cash will be hammered. The Dollar is going to strengthen during a time we have all thought otherwise. As this trend continues you will see equities bleed, crypto markets tank, and yes maybe even real estate effected. Stack your cash and get ready to invest. We will analyze “Dixie’s” movements to give you a weekly analysis on what to expect. Get ready for an opportunity filled 2023. Don’t invest blindly and don’t buy anything without doing your own research. This is just one of many points of views on market movements and trends out there. Safe and happy trading!!!
TVC:DXYLong
by hbayatne
1
EXPLAINED DIXIE (US Dollar Currency Index) What, why where, how?The US Dollar has been in the limelight and not in a good way. In fact, he US dollar has not been dimmer since 22 September 2022 where it was trading at 114.42. Currently it’s at 103.90 (9.19%) down… But what does it all mean? Why is the Dixie such a popular index to understand, and trade. You see it in the news every time you turn on Bloomberg and you see it in the publications. So we might as well understand it for the next time they mention the Dixie. IN this short article I’m going to answer the 6 most important questions, to help you understand the Dixie is, how it’s calculated and how to trade it… 1. WHAT IT IS? The U.S. Dollar Index – DIXIE - (USDX) was first intrpduced in March 1973 and is a measure of the value of the U.S. dollar relative to a basket of foreign currencies. 2. HOW IT’S CALCULATED The USDX is calculated by the Federal Reserve Bank of New York and is based on the exchange rates of six major currencies: the euro (EUR) – Accounts for 57.6% - ,Japanese yen (JPY), British pound (GBP), Canadian dollar (CAD), Swedish krona (SEK), and Swiss franc (CHF) . 3. ECONOMY GAUZE The DIXIE is used as a barometer for the value of the US dollar to base it on the potential strength of weakness of the U.S Economy. 4. TRADED BASED ON The USDX is traded on financial markets, and its value moves based on certain macro aspects such as: Changes in exchange rates, economic conditions, and global market trends. 5. USE Investors and financial institutions uses the USDX is often to hedge against currency risk, as well as to speculate on changes in the value of the U.S. dollar. 6. HIGHER VERSUS LOWER VALUE If the Dixie goes up this means the US Dollar is gaining strength against the other currencies. The more it goes up the more it appreciates which indicates a stronger US dollar – Stronger economy – more confidence in the US dollar. If the Dixie drops, it means the US dollar is getting weaker against the other currencies in the basket for the index. As it drops more, it depreciated which tells us the US dollar is getting weaker which means – a weaker economy and less confidence in the US dollar. If this was interesting let me know in the comments or hit the like button and let me know what else you would like to learn about in bite size information. Trade well, live free. Timon MATI Trader
TVC:DXYEducation
by Timonrosso