Dollar-index
DXY observations (short term bearish trend)DOLLAR OBSERVATIONS
As price continues its downward trajectory, it has shifted its trend to the downside, leaving behind clear supply zones. One of these zones was previously identified and respected as per last week's forecast. I anticipate this short-term bearish trend to persist until it reaches the 104.200 mark. At that point, I expect a bullish reversal to occur, especially considering the presence of an imbalance just above this level.
Additionally, with price currently in a downtrend, my bullish biases on GU and EU align accordingly. This correlation is logical until either of them reaches the supply zone on the daily chart, which should coincide with the same daily demand zone marked out on DXY.
DXY H4 - Long signal DXY H4
Dollar is moving as expected, bouncing from that 105 price we were marking up and focussing on from last week. Following all the economic data points, support held out and corrected perfectly.
We have since approaching 105.600 price, a key area of S/R. This also ties in with GBPUSD support price. An area where we may see a bit of a correction (as annotated) before seeing the next bullish leg upside.
DXY (dollar index) weekly ideaCurrently, the dollar trend indicates a bearish direction, suggesting that pairs I typically trade, such as GU, EU, and gold, may rise. Presently, I anticipate a retracement to occur towards an 8-hour supply zone I've identified, facilitating the continuation of the bearish trajectory.
This ideally aligns with my strategy until the price drops to around the 104 level, potentially sparking a bullish rally upwards. At that point, I'll need to seek selling opportunities for my other pairs. The dollar's price action appears clear, and there are still imbalances below that require fulfilment.
Have a great trading week guys!
$DXY down, $BTC up - The crazy (but logic) correlationCRYPTOCAP:BTC just printed a "magical" green candle, after a kinda "bearish" upward movement with a lot of divergences. No one was expecting an upward movement like this, and really caught bears and shorters by surprise. The short squeeze here was brutal and a lot of shorters must be in pain.
Anyone could be asking themselves, "what the hell just happened?". This is the time where traders blame "manipulation" and "market makers" as the ones who move the market to their interests, with such a, we could say, "irracional" price action.
Well... There COULD be an explanation.
Historically DXY (The index that measures the strenght of US Dollar in the financial market) have had an inverse correlation to the price of Bitcoin and viceversa.
It has some kind of logic, since, if Bitcoin is bought with dollars, then if dollar lose its value, then you need more dollars to buy Bitcoin! simple math, simple logic. We are not sure if the graphs are 100% correlated themselves, but it makes sense!
Here you can see that I applied the TVC:DXY graph over CRYPTOCAP:BTC graph, but the TVC:DXY is INVERTED, meaning that every time TVC:DXY went up, you can see it here going down. So you can see now more clearly the direct correlation both have.
TVC:DXY just broke a trendline and printed a very strong red candle JUST at the very same time BTC did y massive green candle a liquidated short positions at very important sell zones.
It's kind of easy to predict a big movement of any of both, if one of them does a big move at some point, because you can expect the other to do a big move at the same time or some time later.
Keep an eye ALWAYS on DXY when you are trading Bitcoin or any crypto.
It IS a finantial advice.
DXY Risky Long! Buy!
Hello,Traders!
DXY is trading in an uptrend
And made a pullback and
Retest of the new support
Level of 104.078 from
Where we are seeing a
Bullish rebound so
I think that we will see
A further move up
Buy!
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DXY : A bull run?Before anything ,
I have spent 8 years navigating the financial markets, with Level 3 CFA and a Master's in Finance under my belt, I've seen my fair share of trends.
The value of the US Dollar Index is influenced by several factors, including decisions by the Federal Reserve (Fed), US government actions, and the overall health of the US economy. The Fed's monetary policy, statements by the US administration, and US economic data all play a role in how strong the US dollar is compared to other currencies.
and you can check this link and take a look on the technical bias: www.investing.com
As we can see a Resistance level at 104.42-104.45 and a Support level powered by a fair value gap on daily time frame at 103.2-103.8.
DXY OUTLOOK | 4hIn this case the gaps can be used as Demand. There was a medium inducement and there's a possibility it know starts going up but there is also an imbalance curve with a gap under which could get filled with the news. Keep that into consideration.
What do you think about DXY?
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LQP = Liquidity Pool
2WT = 2 Way Trap
Arrows = Inducements
✅DXY TIME TO BUY|LONG🚀
✅DXY is approaching a demand level of 102.800
So according to our strategy
We will be looking for the signs of the reversal in the trend
To jump onto the bullish bandwagon just on time to get the best
Risk reward ratio for us
LONG🚀
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DXY Head and Shoulder Pattern 4HDXY Head and Shoulder Pattern 4H
Possible formation of a head and shoulders pattern on the 4H timeframe.
Pattern is a reversal pattern, could possibly break the 4H trendline to continue the daily timeframe downtrend. Would be looking for shorts from the 50% to 61.8% Fib levels.
Further confluence is the RSI showing now entering overbought levels on the 4H timeframe.
If price breaks past the previous lower high on the 4H timeframe, trade will become invalid.
Like and comment if you agree.