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DXY short to mid-term analysis (Update)This post is an update to my original post few weeks ago where I presented the case for DXY bottoming out. Following is the link to that, please go through it to understand the context. On Thursday DXY closed above 34( Red )EMA, on the daily, as mentioned in previous post, it a sign of strength and possible breakout, and we did breakout the following day and closed much higher. I expect this breakout to hold, and the rally should continue for a while. We can come down and flirt with 13( Green ) and 21( Blue ) EMA's again, this happens until 13 and 21 EMA's start moving up and crosses above 34 EMA, when that happens and sustains for few days, that's the confirmation of bull run and that's the most likely scenario. Fundamentally also, we have reasons for Dollar gaining strength in short to midterm, mostly because of Hawkish Fed and no intention of stopping rate hikes in the coming months, with each upcoming rate hike DXY should keep pushing higher. We also have indications of a stronger than originally expected US economy and decreasing unemployment as contributing factors adding to DXY's strength. Now talking about targets, The Boxes in my chart are very strong S/R zones going back months and years. So, the next zone of mid-size resistance for DXY is 103 price level, where I expect some retrace, then the big one is 104 which may cause a pause in the rally and some consolidation for big retrace. If you like my content then please boost and share this post. I have over 6 years of trading and investing experience and have learned a lot in this time. I like to share what I have learned. If you would like to learn from my experience then follow me on trading view to get notified on my trade, market projections and several upcoming technical analysis and in-depth tutorials on technical Indicators. You can also leave a comment and let me know if you want me to look at any specific asset or want to learn about any specific topic in the world of Technical Analysis. I Will do my best to create a post for it. Keep learning and Happy trading All.
CAPITALCOM:DXY
by zakoraio
NZD USD - FUNDAMENTAL ANALYSISAn extended period of U.S. dollar depreciation is approaching. The greenback could be relatively stable in the near term, as some additional Fed tightening combined with the potential for mildly unsettled markets could provide temporary support for the greenback. However, we expect the U.S. currency to come under pressure as aggressive Fed easing starts in Q4-2023. We forecast the trade-weighted dollar to soften 3% over the balance of 2023, and by a further 5% in 2024.
Long
by thunderpips
DOLLAR INDEX - FUNDAMENTAL ANALYSISAn extended period of U.S. dollar depreciation is approaching. The greenback could be relatively stable in the near term, as some additional Fed tightening combined with the potential for mildly unsettled markets could provide temporary support for the greenback. However, we expect the U.S. currency to come under pressure as aggressive Fed easing starts in Q4-2023. We forecast the trade-weighted dollar to soften 3% over the balance of 2023, and by a further 5% in 2024.
TVC:DXYShort
by thunderpips
1
NZD USD - FUNDAMENTAL ANALYSISAn extended period of U.S. dollar depreciation is approaching. The greenback could be relatively stable in the near term, as some additional Fed tightening combined with the potential for mildly unsettled markets could provide temporary support for the greenback. However, we expect the U.S. currency to come under pressure as aggressive Fed easing starts in Q4-2023. We forecast the trade-weighted dollar to soften 3% over the balance of 2023, and by a further 5% in 2024.
Long
by thunderpips
DOLLAR INDEX - FUNDAMENTAL ANALYSISAn extended period of U.S. dollar depreciation is approaching. The greenback could be relatively stable in the near term, as some additional Fed tightening combined with the potential for mildly unsettled markets could provide temporary support for the greenback. However, we expect the U.S. currency to come under pressure as aggressive Fed easing starts in Q4-2023. We forecast the trade-weighted dollar to soften 3% over the balance of 2023, and by a further 5% in 2024.
TVC:DXYShort
by thunderpips
DXY: BRICS Creating New Reserve CurrencyHi Traders, Investors and Speculators of the Charts 📈📉 Ev here. Been trading crypto since 2017 and later got into stocks. I have 3 board exams on financial markets and studied economics from a top tier university for a year. For the past eight decades, the U.S. dollar has been the dominant global currency following the Second World War. It has been widely accepted worldwide, with only a few exceptions, and is commonly recognized by the image of Andrew Jackson and the seal of the U.S. Treasury, making it the most recognizable export of the United States. The U.S. dollar became the reserve currency of the world following the Second World War, mainly because the United States was the dominant global economic and military power at the time. The Bretton Woods Agreement of 1944 also played a crucial role in establishing the dollar's role as the world's reserve currency. Under this agreement, other countries agreed to peg their currencies to the U.S. dollar, which was backed by gold. This made the U.S. dollar a stable and reliable currency for international transactions, leading to its widespread acceptance as a reserve currency. Additionally, the U.S. had a large trade surplus, making it easier for other countries to hold dollars as reserves to pay for U.S. goods and services. The dominance of the U.S. dollar as the world's reserve currency has been a source of both admiration and resentment among other countries and superpowers. Many countries have benefited from the stability and liquidity that the U.S. dollar provides as a reserve currency, allowing them to conduct international trade and investments with greater ease. However, some countries have also experienced the negative effects of dollar dominance, such as the risk of currency fluctuations and the potential for U.S. monetary policy decisions to have spillover effects on their own economies. The U.S. dollar was not only commonly used in international transactions but also widely held as a long-term store of value across the globe. Central banks worldwide held more U.S. dollars than any other currency. This resulted in low borrowing costs for Americans , which allowed middle-class people to buy homes. Furthermore, the U.S. government was able to incur significant debts without apparent consequences due to the dollar's global dominance. Americans may not have been aware of this situation, but it had a favorable impact on their daily lives. Occasionally, the Congress discussed the debt ceiling, but it seemed like an abstract topic that most people did not care about since America controlled the global reserve currency and could print U.S. dollars. This privilege made money cheap, and Americans enjoyed benefits that were not available to other countries. However, the thought of losing this dominance was too terrible to contemplate, and concerns began to arise around the time the Russian military entered Ukraine about a year ago. The consequences of such a loss would be dire, and it was a worrisome issue. The Russian military's invasion of Ukraine was destabilizing, as wars typically are. However, it was the West's reaction to the invasion that raised concerns. U.S. policymakers, led by USA President Joe Biden and supported by Republican senators, seemed intent on not only toppling the Russian government but also disrupting the post-World War II economic order that had benefitted the U.S. for decades. The sanctions weren't expected to harm the U.S. economy more than the Russian economy. Russia's economy is not heavily reliant on financial services but on natural resources such as oil, gas, iron, and coal . Despite the sanctions imposed on Russia, its Ruble remains stable against the US dollar, which suggests that the sanctions did not have a significant long-term impact on Russia's economy. The seizure of Russia's central bank's dollar reserves was intended to collapse Russia's credit system and cause bank runs, but it didn't happen. The USA did not consider the dangers when using the dollar, the sign of security and unity, as a weapon. The result of this is unsurprising, many countries lost confidence in the dollar. And so, Russia, Brazil, Pakistan, India, Malaysia, France, China, and Saudi Arabia are conducting business in currencies other than the US dollar, such as the Chinese currency Yuan. This is happening at a fast pace and shutting out the US dollar, which is losing trust from other countries due to its use as a weapon and excessive printing, leading to inflation and currency devaluation. 💭Final Thoughts 💭 We look to history to speculate on the future. As the saying goes, history repeats itself. During the First World War, the German government borrowed heavily to finance the war effort, resulting in a significant increase in national debt. The government continued to print money to pay for its expenses, which led to hyperinflation and a collapse of the German economy in the early 1920s. In 1923, the German mark was practically worthless, and people had to carry wheelbarrows of money to buy basic goods. This hyperinflation had a devastating effect on the German people, wiping out their savings and pensions and causing widespread poverty and social unrest. The situation stabilized when the German government introduced a new currency, the Rentenmark, backed by mortgages on agricultural and industrial land which restored some degree of confidence in the currency. The German government basically inflated their currency due to excessive debt accumulated from war. The United States has a similar history with wars, relying on the reserve currency status to recover from the economic damage of these wars. However, considering the large economical impact of Russia and BRICS's contribution the the economy, it could be catastrophic due to the current state of the US economy. The BRICS nations (Brazil, Russia, India, China, and South Africa) are exploring the possibility of creating a new reserve currency as an alternative to the US dollar-dominated international financial system. The proposal was discussed at a virtual meeting of the BRICS finance ministers and central bank governors, with a goal to decrease the dependency on the US dollar and increase trade between member countries. However, no specific details were provided yet about the potential reserve currency. _______________________ 📢 Show us some LOVE 🧡 Follow for daily updates and trade ideas on Crypto , Stocks , Forex and Commodities 💎 We thank you for your support ! CryptoCheck
TVC:DXYShort
by CryptoCheck-
53
Better action on the EUR/USD todayOANDA:EURUSD Much better this morning No fancy terms, no fancy commentary, NO fortune telling here from me. I don't pretend to know how the market makers play everyday, no one can, as we are mostly just home gamers sitting home trying to pay our bills. AND NO, no one know how the banks trade, if they knew, why are they posting to us home gamers? I just use some cool tools to help me get some scalps here and there, that is it. Trade well. Now to enjoy my day.
Short
by makerup
"De-Dollarization" is coming...?The U.S. dollar has dominated global trade and capital flows over many decades. However, many nations are looking for alternatives to the greenback to reduce their dependence on the United States. This graphic catalogs the rise of the U.S. dollar as the dominant international reserve currency, and the recent efforts by various nations to de-dollarize and reduce their dependence on the U.S. financial system. The United States became, almost overnight, the leading financial power after World War I. The country entered the war only in 1917 and emerged far stronger than its European counterparts. As a result, the dollar began to displace the pound sterling as the international reserve currency and the U.S. also became a significant recipient of wartime gold inflows. The dollar then gained a greater role in 1944, when 44 countries signed the Bretton Woods Agreement, creating a collective international currency exchange regime pegged to the U.S. dollar which was, in turn, pegged to the price of gold. By the late 1960s, European and Japanese exports became more competitive with U.S. exports. There was a large supply of dollars around the world, making it difficult to back dollars with gold. President Nixon ceased the direct convertibility of U.S. dollars to gold in 1971. This ended both the gold standard and the limit on the amount of currency that could be printed. Although it has remained the international reserve currency, the U.S. dollar has increasingly lost its purchasing power since then. Russia and China’s Steps Towards De-Dollarization Concerned about America’s dominance over the global financial system and the country’s ability to ‘weaponize’ it, other nations have been testing alternatives to reduce the dollar’s hegemony. As the United States and other Western nations imposed economic sanctions against Russia in response to its invasion of Ukraine, Moscow and the Chinese government have been teaming up to reduce reliance on the dollar and to establish cooperation between their financial systems. Since the invasion in 2022, the ruble-yuan trade has increased eighty-fold. Russia and Iran are also working together to launch a cryptocurrency backed by gold, according to Russian news agency Vedmosti. In addition, central banks (especially Russia’s and China’s) have bought gold at the fastest pace since 1967 as countries move to diversify their reserves away from the dollar. How Other Countries are Reducing Dollar Dependence De-dollarization it’s a theme in other parts of the world: - In recent months, Brazil and Argentina have discussed the creation of a common currency for the two largest economies in South America. - In a conference in Singapore in January, multiple former Southeast Asian officials spoke about de-dollarization efforts underway. - The UAE and India are in talks to use rupees to trade non-oil commodities in a shift away from the dollar, according to Reuters. - For the first time in 48 years, Saudi Arabia said that the oil-rich nation is open to trading in currencies besides the U.S. dollar. Despite these movements, few expect to see the end of the dollar’s global sovereign status anytime soon. Currently, central banks still hold about 60% of their foreign exchange reserves in dollars. What will happen to the dollar in the next few years? What is your opinion? Like if my analysis is useful. Cheers!
TVC:DXY
by TheAnonymousBanker
7
Dollar Index Chart Analysis.... In this situation, DXY chart creates ab=cd Pattern. So,if a breakout market 101:000 support level is then market sell to the nearest 100.800 and 100.230 support levels. If breakout 101.700 resistance level is, then the market will go up 102 resistance level. AronnoFX will not accept any liability for loss or damage as a result of reliance on the information contained within this channel including data, quotes, charts and buy/sell signals. If you like this idea, do not forget to support with a like and follow. Traders, if you like this idea or have your own opinion about it, write in the comments. I will be glad.
TVC:DXYShort
by AronnoFx