DOLLAR INDEX Breakout Long! Buy!
Hello,Traders!
DXY is trading in a strong uptrend
And the index broke the key horizontal level
Then retested it and made a move up
Which reinforces our bullish bias
And make us expect bullish continuation
In a classical trend-following setup
Buy!
Like, comment and subscribe to boost your trading!
See other ideas below too!
Dollar-index
DXY H4 - Short Signal, Gold long, cable longDXY H4
So far moving pretty much as expected, we have had this assumption and market bias and expectation for a little while now, and it's starting to unfold.
Lower low and lower high structure trend, with the exception of FOMC Wednesday. Hopefully we can see DXY fall too 100.00, gold push to $1900 and cable 1.30.
Dollar IndexHello everyone!
There are many tools on the market to understand the general state of the economy or the company.
As a rule, indexes are responsible for this.
And today we will discuss the Dollar Index.
A little history
In 1973, the dollar Index (DXY) was invented and first introduced by JP Morgan.
Level 100 is the base value of the index. If the instrument shows, for example, a value of 110, it means that the dollar has grown by 10% relative to the base value.
As you may remember, in March 1973, the largest countries in the world introduced a floating exchange rate – this date was the beginning of the index.
About the index
With the help of the dollar index, analysts determine the strength of the dollar as a whole. This is a very simple analysis tool that almost every analyst uses and shows the index how strong or weak the dollar is relative to other world currencies.
Method of calculating the dollar index
The index consists of weighted components of the following currencies: euro (57.5%), Japanese yen (13.6%), British pound sterling (11.9%), Canadian dollar (9.1%), Swedish krona (4.2%) and Swiss franc (3.6%).
As you can see, the currencies with which the dollar is compared are European countries, which is why DXY is called an "anti-European" index.
Based on the number of currencies in the index, people believe that the US is compared with six European countries, which is incorrect, since the euro is officially the currency of 19 EU countries: Austria, Belgium, Germany, Greece, Ireland, Spain, Italy, Cyprus, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, Finland, France, Estonia.
Add to this 5 more countries — Japan, Great Britain, Canada, Sweden and Switzerland and we get almost the entire civilized world.
Although all countries are united by one currency, their economies are still different and therefore each currency of a separate country has a corresponding weight in the index.
Dollar Smile
One of the Morgan Stanley analysts noticed an interesting feature of the dollar – the dollar can strengthen in both bad and good economic conditions. This analyst was Stephen Jen and it was he who came up with the "dollar smile theory", the essence of which is that the dollar adheres to three scenarios:
1. "safe harbor" - investors believe that the economy is experiencing difficulties, so everyone is investing in less risky dollar assets.
2. When the US economy is weak, the dollar falls. The fall is strongly influenced by interest rates, as a result, everyone gets rid of the dollar, and the smile becomes wider.
3. Perhaps the easiest period to understand is the growth of the dollar due to the economic growth of the United States.
People increasingly believe in the country and the currency, which contributes to a greater growth of the dollar.
Thanks to this theory, it is easier to understand the market situation in general and the cyclical nature of the market.
How to use the index
The index is usually used to analyze currency pairs.
The index helps to determine the relative strength of the currency relative to the dollar, at those moments when you trade currencies in which there is USD, for example, EURUSD, GBPUSD, USDCHF, etc. The
index is also used to find discrepancies.
If DXY falls and the dollar weakens, then you will see growth on the GBPUSD chart. If the dollar is the base currency, for example, USDJPY, then the index and the currency pair will move in the same direction.
Often you will notice that the dollar index is growing, and the currency pair is standing still – this is the discrepancy, which is very profitable for an observant analyst.
In addition to correlation with currency pairs, DXY correlates with oil.
The fact is that the largest oil consumers are hedgers of dollar inflation. Hence the inverse correlation of these instruments.
Professional analysts, before currency trading, look at the dollar index to understand the trend directions.
Conclusions
Thanks to the index, you can understand the state of the US economy.
DXY is a great addition to your strategy, which helps you identify trends or find discrepancies on the charts.
Using the index you will avoid mistakes and increase your profit.
DOLLAR INDEX Will Keep Growing! Buy!
Hello,Traders!
DXY was trading in a range
But now we are seeing a bullish breakout
Just as I predicted in my previous analysis
Thus confirming our bullish bias
So I think that after a potential pullback
We will see bullish continuation
Towards the target above
Buy!
Like, comment and subscribe to boost your trading!
See other ideas below too!
DOLLAR INDEX Wait For Breakout! Buy!
Hello,Traders!
DOLLAR INDEX is trading in an uptrend
And the pair is currently struck in a nice range
So IF we see a bullish brekaout
Then a bullish continuation will follow
WIth the target of retestinga supply level above
Buy!
Like, comment and subscribe to boost your trading!
See other ideas below too!
DOLLAR INDEX Will Keep Growing! Buy!
Hello,Traders!
DXY is trading in an uptrend
Ans the index is now retesting a long term rising support
Which makes me bullish and I think
That we will see a bullish rebound
And a move down
Buy!
Like, comment and subscribe to boost your trading!
See other ideas below too!
DXY D1 - Long SetupDXY D1
As we mentioned DXY support holding nicely from the daily correction we saw over the last few weeks. We are expecting a bullish dollar throughout the week based on recent economic events and projections.
96.500 resistance is our next target, this ties in with yearly highs (2021) and also our daily resistance, which I expect us to break over the next 4 weeks or so.
DXY - The fall of USD?? Now this may be hard to grasp in, but the technicals don't lie...
USD index has tested the support line of the upward channel, unfortunately the support wasn't capable of holding the price to it's intended direction.
The dollar index has been strong since last early, respecting the formations of higher highs and higher lows.
Seems like the bears are taking control of the market.
DXY SHORT ANALYSIS TO $82.50 (DAILY TF)This here is my short analysis for the Dollar Index all the way back down to $82.50. This here is the overall bigger direction on the Daily timeframe. My Monthly TF analysis (Posted on my TradingView profile) has led me to believe the Dollar Index will take another dive down, in order to complete the corrective structure in accordance to the Elliot Wave Theory.
So far we've seen a completion of the impulse move (Wave 1, 2 & 3) followed by a bearish wave down in 2017 which broke the bullish structure. This move down would be considered Wave A of the correction, WAVE B is also now complete the upside, so now we are expecting one final wave (Wave C) to complete the overall Elliot Wave Theory move. This predicted move is likely to play out over the next few years.
All my socials are listed on my TradingView profile. I will be catching this move on behalf of myself & my Account Management investors.
DXY D1 - Short SetupDXY D1
Expecting a bearish dollar this week is we can break below this 95.500 price, if we can manage this, we will have set a new low following the consolidation breakout low, therefore continuing this LLLH sequence, we should be well on for seeing our 94.500 retest price.
We have been following this for quite some time now and the move we are expecting still has yet to present itself, but we have still managed to bank nicely from cable/GBPUSD longs
DXY D1 - Short SetupDXY D1
We may finally see this pullback towards 94.500 after the headlines and comments from Powell and the FED yesterday, lots of volatility surrounding the event, but as per the technical rundown... Solid bearish close with a majority wick fill.
Fresh daily, and we are seeing resumed weakness, really need to break and close around 95.500 to break interim support and send us deeper south.