DXY (dollar index) Out lookMy bias for the dollar is that it may start to slow down and experience some pullbacks, likely to fill the imbalances below and capture some liquidity. However, I also see Scenario A playing out, which could push the price upward and continue the bullish trend.
Given the current market conditions, I expect these retracements, which also align with my outlook for EU and GU.
Confluences supporting my bullish bias on the dollar:
- The DXY has been very bullish and has broken significant structure to the upside.
- The DXY has surpassed the key psychological level of 105.00.
- There is still a lot of liquidity to the upside that needs to be taken.
- Clean demand zones are in place, reinforcing my bullish outlook.
P.S. Be cautious and watch for the major red news on Wednesday, specifically the CPI event, as it will provide key insight for the forecast. I expect the dollar to retrace ahead of the news, but once it's released, I anticipate the dollar will shoot back up.
Dollarbull
DXY Potential Longs from 100.200 back upMy current bias for the dollar is very much bearish, as price has broken structure to the downside once again. While I don’t trade the dollar directly, I use it as a confluence to confirm trade ideas for other pairs like GBP/USD (GU) and EUR/USD (EU). Since I’m looking to short both pairs right now, this bearish outlook on the dollar makes sense.
In scenario (B), I can see the price heading to the 9-hour demand zone, where it might accumulate and then shoot back up to the next supply zone. With the recent break of structure (BOS), a nicely formed 4-hour demand zone is also in play.
Since price is currently in a supply zone, I’ll stick with this bias until the dollar "shows its hand." However, if the dollar slows down and begins to accumulate on Monday, we might see some promising opportunities this week.
Given that this is a counter-trend trade, I’ll be cautious, aiming for high risk-reward ratios while keeping an eye on the nearest demand zone for entries.
Happy trading, guys!
GBP/USD bearish OUTLOOK medium termZEYAN here!!!!
I'm looking at the market as a bear, and as far as I can tell, in the medium term, it's more bearish then bullish
This is a general idea of how I view the market; I use algorithms to determine trend and different entry techniques; please do not take this information at face value; conduct your own research.
If you want me to analyze your charts, please let me know in the comments.
like for more!!!!!!!!!
This is not financial advice; please conduct your own research and use this information as confirmation in addition to your own analysis.
USDCAD Potential Buy @SupportUSDCAD has given us a nice pullback to support around the 1.27800 level, price broke through this level as resistance earlier this month and is now retesting it as support. With interest rate hikes coming in 2022 we can expect dollar bulls entering the market. This may be yet another pivotal moment to see USDCAD take another move to the upside
A Tale Of Three PitchforksIf the dollar does go to 120 it means something extraordinary has happened geopolitically
Our initial target is 103 in feb
Tales of the dollar's demise have been much exagerrated
If this chart plays out inflation was indeed transitory and all of the talking heads will be shilling deflation
Maybe Auntie Cathie was right lol
NOT FINANCIAL ADVICE
G.R.I. Dec '21
DXY just put the Dollar Milkshake back on the menuBackground
For years I have been fascinated by the Dollar Milkshake Theory of Brent Johnson out of Santiago Capital. In the broadest strokes, there will be increased dollar demand as the fiat system collapses because all the other fiats will collapse and then the Dollar will be the last fiat standing before the fiat system is replaced (somehow). This leads to some oddities in theory. US assets/equities will go up in value against non-us assets while the dollar goes up itself as people seek a hedge against the strong dollar. International trade of equities and futures allows this to happen in a way that would be unfeasible just a few decades ago. And if for some reason you can't buy US equities? Then you buy anti-fiats like precious metals or whatever de-fi stable coin you can.
Whenever the dollar rises Brent is praised for his theory and whenever it declines he is slagged. In either case he is humble and clarifies he has a theory and his company hedges against the theory and it isn't the whole portfolio.
But DXY has put the Dollar Milkshake on the menu.
Analysis
Few things have been more successfully for me in my long term investments than use of the weekly and monthly bollinger bands when combined with some divergence, basic charting, and even a half ass reliable fundamental analysis. Please review my linked idea on chain-link for my best example thereof and an earlier prediction on DXY. Shown is the monthly chart of DXY with the monthly and weekly Bollinger bands.
Checklist
The Dollar Milkshake theory is AT LEAST some half assed fundamental theory.
We were against both weekly and monthly Bollinger bands
Basic charting shows zone that has flipped from resistance to support and we are now testing it as support again
the MACD suggest a bullish cross of the sigil line is highly likely
The MACD suggest that the MACD will cross above zero.
Suppositions
DXY at least reaches the purple trendline
DXY thrust upwards mightily above the purple trendline and then attacks it again as support
DXY battles its way valiantly though the grey area of resistance
The Weekly Bollinger band will again act as resistance as DXY channels upward.
Macro Devastation
Perhaps the most devastating thing about our current environment is the effective federal funds rate is in a falling wedge. There was a while where I was supposing the nominal rate would go to zero but that turned out to not be the case. But the real interest rate has been zero by official stats, and by shadow stats, and by the fact I can get up to 11% on USD stable coins on various defi/staking platforms. If the dollar is rising and interest rates on dollar loans are rising this will cause havoc on a global stage. The financial news will be in hersterics and at no time will they blame fractional reserve banking or how central banks facilitate the addiction to sovereign debt. Oh well.
Recommendations
I don't give financial advice. I personally like digital currencies as opposed to digital stores of value for the next 18-24 months.
Get rich or stay poor.
Bond Meltup IncomingInterest rates are going to continue to move up to help drain the excess liquidity in the system. TGA will spend the last of its money in the form of a stimulus package, then we will see a great reversal on the dollar and interest rates, as cashflow continues to dry up, banks too scared to loan to each other (and therefore not make consumer and commercial loans), and money continues to move from consumerism to savings accounts. Put simply, illiquidity in the system, and raising interest rates will lead to a smackdown to near-zero again, maybe even negative, to prevent a major shock to the system.
Looking to buy more TLT dips this year. I think the meltup will begin with bank insolvency.
Is the US Dollar turning bullish?TVC:DXY
On a weekly chart we see a MACD & RSI divergence.
But that alone is not enough. We need to see a reversal pattern and/or structure breakthrough.
So lets dig deeper:
On a 4H chart we see a double bottom, with the second leg being a bullish engulfing candle.
Moreover, this is accompanied by a MACD & RSI Divergence.
We believe that a confirmation of the engulfing candle + a breakout of the downward resistance lines shown in the chart, could possibly lead to a larger positive trend in the USD.
Happy Trading!
Share your view on the DXY.
Whether you agree or disagree, we can learn from everyone.
Macro views are also great!
USD/CHF - LongFX:USDCHF
The Setup
Downward Wedge bullish breakthrough on 4H chart.
Technical show a MACD & RSI divergence.
Trading
You can Enter Trade at current levels.
More conservative traders can wait for the price to retest the wedge pattern.
Stop Loss at 0.8846 (below last low of wedge ).
Suggested take profit levels shown as white horizontal lines.
Happy Trading!
Feel free to share your opinion.
NZDUSD - Rising Wedge - ShortFX:NZDUSD
Rising Wedge formation + false break at the 5th point.
This is in conjunction with a MACD Divergence.
On a 4 hour chart a shooting star reversal candle is present.
Short at 0.77017
Stop Loss at 0.7036
Take profit at support/resistance along the way.
This trade idea supports my larger active trade shorting the NZDUSD based on a harmonic pattern - Linked below
Good Luck & Happy Trading!
EURUSD - Short - Shooting StarEURUSD has reached a resistance level.
On that level we see a large downward movements + MACD Divergence + Shooting Star reversal candle on 4H Chart
Enter on reversal candle confirmation.
Stop loss above the candle.
Take profits along the way at possible reversal zones.
Happy Trading!
NZDUSD - Bearish Crab - ShortFX:NZDUSD
A bearish Crab Harmonic pattern has formed on the kiwi-dollar.
We have a 0.618 point B (within 3% margin)
We have a Potential Reversal Zone (PRZ) of 1.618 XA & 3.14 BC at point D.
PRZ connects with resistance line (dotted).
Trade Entry:
On a 4H chart we see a MACD divergence.
Look for reversal candle to form to enter the trade.
Stop loss at 2.0 XA
Take Profit 1 at 38.2% AD
Take Profit 2 at 61.8 AD
Happy Trading!
Pre NFP DXYNFP day , which we want to capture that sharp move with high profit. I have notice the demand level. Though it has been visited and its not a fresh level anymore. Even so , the scoring is either 8 or 7 depending on the arrival. If the arrival is sluggish, I suggest leave it. If the arrival is strong, anticipate with EURUSD or GBPUSD to sell!
Happy Hunting!
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