Dollar Index (DXY): Time to Recover?!
Dollar Index reached a significant daily horizontal structure support.
Its test made a bearish rally stop.
The market formed an inverted head and shoulders pattern on an hourly time frame
and just broke its neckline, leaving a clear bullish clue.
The price may bounce at least to 100.89
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Dollar
$DXY - Bottom Range Bound BreachedThe Dollar Index TVC:DXY has breached a pretty serious
level ;
the bottom range bound which has previously acted as
strong support for TVC:DXY to bounce.
Will this time be the same and this will result in a fake-out?
Or will TVC:DXY headed lower, re-visiting pre-pandemic levels?
Check out the previous released ideas linked below
for more in depth information regarding our journey
'Decisive Move Around the Corner' (line chart)
(candlesticks chart)
TRADE SAFE
NOTE that this is not Financial Advice !
Please do your own research before partaking upon
any trading activity based solely on this idea.
DXY Hits Yearly Low: Is a Major Support Test at 100 Coming Next?By reviewing the US Dollar Index chart on the daily timeframe, we can see that last week, the price reached its lowest level in a year, closing at 100.677. Given that the price has dipped below a liquidity pool, we might see an initial positive reaction at the beginning of the week, but I still expect further declines in the Dollar Index overall. Keep in mind that there is a very strong support level ahead for the dollar, which is the psychological level of 100, and we will likely see a significant reaction to this level. We will be providing weekly analyses of the Dollar Index from now on, so be sure to support and follow!
Please support me with your likes and comments to motivate me to share more analysis with you and share your opinion about the possible trend of this chart with me !
Best Regards , Arman Shaban
((2+4+7+13+15+18+26+36+38+69+87+101+183+209+1000+1002+1000000000+1000000001+ 1000000853)^♾️*69) + 1 !
GBPUSD - Daily Bullish signsOANDA:GBPUSD has recently passed an important support zone, indicating potential for higher targets. After a clear pullback to the 1.2830 area, the pair is positioned for a further rise.
The British Pound has been bolstered by a series of positive economic indicators and political stability. According to recent reports, analysts at Investec have raised their forecast targets for the Pound against the Dollar, driven by a more promising economic outlook and favorable political conditions in the UK. This aligns with the technical setup, where GBPUSD is poised for a continuation of its upward movement following the successful retest of the support zone.
Overall, combining the technical and fundamental perspectives suggests a bullish outlook for GBPUSD, with potential for further gains as long as the support zone holds firm.
DOLLAR down BITCOIN upThe DOLLAR is the worlds #1 trade and reserve currency
#GOLD is the KING of Anti Fiat
#Bitcoin is attempting to replace GOLD in the mindshare of people
(to a certain extent it has, considering from where it started from just a brief 15 years ago)
So observing the major trends of the #DXY is crucial to determine how to place your bets
and how much risk you should be taking on.
*** The caveat being that the DXY is just measuring the dollar mainly against the Euro and various other major Fiats that become more worthless over the years ... so these decades long gyrations don't actual show you how poorly these #fiat currencies store your value.****
I believe #Crypto is on the cusp of some spectacular returns
The #BTC.d will soon reverse
You will see #Ethereum and the # altcoins gain some real strength once grayscale has sold down much of it's ETH holdings.
The 4 year cycle is back on track ... after running too soon in the cycle.
Historically Q4 of a Bitcoin halving year is the start of some explosive up moves.
We have been waiting 4 years for this...
Do you want to wait another 4 years for 2028 to experience the next Crypto meltup?
Could demand for the dollar pick up once more today?The dollar saw strong bids overnight as robust macroeconomic data (unemployment claims and Composite PMI) functioned as bullish catalysts.
With Federal Reserve Chairman Jerome Powell kicking things off at the Jackson Hole Symposium later today, could we see another round of higher demand for the greenback and thus a further a decline in EUR/USD?
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AUDUSD: Important Support and Resistance Levels 🇦🇺🇺🇸
Here is my latest structure analysis and important
support & resistance levels for AUDUSD.
Resistance 1: 0.6784 - 0.6800 area
Support 1: 0.6633 - 0.6643 area
Support 2: 0.6550 - 0.6568 area
Support 3: 0.6349 - 0.6367 area
Consider these structures for pullback/breakout trading.
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Shift in Carry Trades: Hedge Funds Embrace USDTRYA Shift in Carry Trades: Hedge Funds Embrace the US Dollar
The once-dominant Japanese yen has historically been the preferred currency for carry trade strategies, where investors borrow low-interest-rate currencies to invest in higher-yielding ones. However, a significant shift is underway, as hedge funds increasingly turn to the US dollar as their borrowing currency. This strategic change is driven by a confluence of factors, including the US Federal Reserve's monetary policy stance, the weakening Japanese yen, and the allure of emerging-market currencies.
The Allure of Emerging-Market Currencies
Emerging-market currencies have long been a focal point for carry trade strategies, offering the potential for substantial returns. The relatively high interest rates in these economies, coupled with their often-growing economies, make them attractive investment destinations. However, the choice of borrowing currency plays a crucial role in determining the overall risk-reward profile of such trades.
The Yen's Diminishing Appeal
The Japanese yen has traditionally been a popular choice for carry trades due to its historically low interest rates. However, a combination of factors has eroded its appeal in recent years. The Bank of Japan's ultra-loose monetary policy, aimed at stimulating the economy, has kept interest rates exceptionally low. Moreover, the yen's weakness against other major currencies has increased the risk of exchange rate losses for investors who borrow in yen.
The Rise of the US Dollar
The US dollar, once a less common choice for carry trades, has gained prominence as a borrowing currency. Several factors have contributed to this shift. First, the US Federal Reserve's more hawkish monetary policy, characterized by interest rate hikes and a reduction in quantitative easing, has made the dollar a relatively higher-yielding currency. Second, the dollar's strength against other major currencies has reduced the risk of exchange rate losses for investors who borrow in dollars.
The Case of USDTRY
One notable example of the shift towards US dollar-funded carry trades is the USDTRY pair. The Turkish lira, with its relatively high interest rates, has been a popular target for carry trade investors. However, the increasing political and economic uncertainties in Turkey have made the lira a riskier investment. By borrowing in US dollars, investors can potentially benefit from the interest rate differential while mitigating some of the risks associated with the Turkish lira.
Challenges and Considerations
While the US dollar-funded carry trades offer potential benefits, they are not without risks. The US Federal Reserve's future monetary policy decisions, geopolitical events, and economic fluctuations in emerging markets can all impact the profitability of these trades. Additionally, the increasing popularity of carry trade strategies can lead to market volatility and potential
reversals.
Conclusion
The shift in carry trade strategies from the Japanese yen to the US dollar represents a significant development in the global financial markets. As emerging-market currencies continue to offer attractive investment opportunities, the choice of borrowing currency will remain a critical consideration for hedge funds and other investors seeking to capitalize on these trends. While the US dollar has gained prominence, the potential risks and challenges associated with carry trades should be carefully evaluated before making investment decisions.
DXY => Recession Risks and Potential UpsidesHey Traders, in tomorrow's trading session we are monitoring DXY for a buying opportunity around 102.150 zone, DXY is trading in an uptrend and currently is in a correction phase in which it is approaching the trend at 102.150 support and resistance area.
Trade safe, Joe.
USDCHF sellUsd chf sell idea is based on Some considerations as we can see the rally downwards has made its retracement to 68.2% level of resistance on H4 and after retracement the pair has started to move into its direction now the price is heading towards its support level and will start to rise if it gets support on this level otherwise if price breaks below it will go further down
Will The SPY Hit 650-700?Just an update on progress in the markets. The dollar has hit my support level already. Because of the quick drop, I expect it to continue to drop even further, though we may get a bit of a bounce first. The Vix is back down and inside of our long-standing sideways channel. And gold has hit its target to the upside.
Plus we'll talk about where the SPY (and U.S. Stock market) is going. That section of the video begins around 07:30 if you want to skip right to the title content of the video. And towards the end of the video, we'll of course discuss where I think Bitcoin is still going before the end of the year and also, where I think it will end up by the end of next year.
These are longer-term targets but they are not solely predicated upon technical analysis. Though the technicals do help support my claims, there is also some fundamental rationale for why I believe the markets remain so volatile, but overall, they will continue their journey upwards.
XAUUSD | Trade ideaDuring morning trading, the XAU/USD pair is holding around 2500.00. At the end of last week, gold demonstrated a confident upward trend. It was partly supported by expectations of the US Fed’s imminent transition to a “dovish” monetary policy cycle. Analysts have revised their estimates of a possible interest rate cut of 50 basis points, and now, its probability is no more than 28.0%. At the same time, the American regulator may adjust the value by –25 basis points at each of the three meetings scheduled this year, leading to a sharp reduction in the borrowing cost from the current 5.50%. Traders will discuss the possible steps of the financial authorities all week since the annual symposium in Jackson Hole will be held on Thursday, August 22. The representatives of the world’s central banks will speak, giving assessments of the current economic situation, as well as the timing of changes in monetary parameters. A day earlier, the US Fed will publish the minutes of the July meeting, which ended with the interest rate maintained at the current level. In addition, investors will pay attention to business activity data. The service PMI may fall from 55.0 points to 54.2 points, and the manufacturing PMI from 49.6 points to 49.4 points. Another factor supporting gold prices is the continuing risks of military conflicts in the Middle East and Eastern Europe. Despite conflicting reports in the media about the Iranian authorities’ imminent response to the death of Hamas political bureau chief Ismail Haniyeh, no active measures have been taken against official Israel so far, which, on the one hand, only increases uncertainty, preventing market participants from counting on the parties concluding a peace agreement.
Maximise Your Trading Success 3 Essential Tips for Setting AlertSetting alerts in trading is crucial for effective risk management and maximising opportunities. Here are three key reasons why you should set alerts:
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Proactive Trading: Alerts enable traders to respond promptly to significant market movements, ensuring they don't miss critical entry or exit points. This is particularly important in the highly volatile markets, where prices can change rapidly.
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Stop-Loss and Take-Profit Alerts: Alerts can help enforce disciplined trading by reminding traders to execute their stop-loss or take-profit orders, thus limiting potential losses and securing profits.
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Focus on Strategy: Alerts allow traders to concentrate on their trading strategy without being glued to their screens all day. This can lead to more thoughtful decision-making and reduced emotional trading.
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Setting alerts in forex trading enhances your ability to respond to market changes quickly, manage risk effectively, and improve overall trading efficiency.