Dollarindex
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.
DXY Dollar Index Technical Analysis and Trade IdeaIn this video we look at the #DXY dollar index and analyse its potential trend reversal. The daily timeframe shows a pattern of higher lows and highs, with a clear formation of a bottoming structure. Throughout the video, we will discuss the current market conditions, including price action, market structure, and the trend, and identify a potential swing trade opportunity for the upcoming week. It's important to note that the information presented in this video reflects only my personal opinion and should not be considered as financial advice.
USD MASSIVE RALLY UPCOMINGThe FX:USDOLLAR has entered a strong daily demand zone and as you can see as marked on my chart, I have marked a buy-side liquidity pool which the market is meant to sweep. Also, there is a weekly fair value gap (FVG) or liquidity void which just sits above the daily buy-side liquidity pool. This should attract price to reach for these key opportunities. This is why I am expecting the dollar(USD) to print strong bullish candles.
What do you guys think, is it going to dip just below the daily demand zone or it will respect the zone and rally?
I would be dropping USD pairs that I am monitoring... SO STAY TUNED!!!
You can also check out my other trade ideas below.
NZDCAD
AUDJPY
CADJPY
Cheers,
David
$DXY Latest Analysis #DXY #USDOLLARTraders and Investors,
It is still consolidating. I tried to go higher in the last week of the last month but failed to keep the breakout. There is a double bottom below which can target liquidity but trade what you see. It may or may not happen. Below this, we have 100 as the psychological level. A possible W pattern is also forming. It is not confirmed yet and is just a scenario (possibility) for now to consider. The higher time frame levels are there on the chart.
Please check USDCHF and USDJPY analysis too as they can give strength to DXY.
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-Vik
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📌 DISCLAIMER
The content of this analysis is subject to change at any time without notice and is provided for the sole purpose of education only.
Not financial advice or signal. Please make your own independent investment decisions.
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GBP 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.
DOLLAR INDEX - FUNDAMENTAL DRIVERSAn 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.
Still looking to short DollarThe dollar is experiencing fundamental weakness due to its data, with yuan transactions surpassing it for the first time. The GDP was worse than anticipated, causing concerns of an impending recession. Today's core PCE data, a crucial inflation indicator, could potentially alter the trajectory of the dollar, therefore, be cautious.
From a technical standpoint, I am searching for a trend rejection.
💸U.S.Dollar Index, 1792 to date●● Preferred count
◉ U.S. Dollar Currency Index (DXY), 🕐TF: 1M
Fig.1
The counting of long-term waves has not changed. I still think that there is still a possibility of a correction to the area of the previous wave (IV) . On the other hand, of course, it should be understood that the fourth waves in most cases form lateral corrections with an overlap and do not always reach the area of the previous fourth. And is it a wave ((IV)) at all? I am sure that as the structure develops at lower time intervals, hints will appear and the least likely scenarios will be cut off.
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◉ TVC:DXY , 🕐TF: 1W
Fig.2
In the meantime, we can make an assumption that the wave structure of wave c becomes more complicated to a double zigzag with a triangle in the sub-wave Ⓧ , but the combination and the flat are also not excluded.
On the six-hour chart, the sub-wave Ⓧ in the form of a flat will be marked in black .
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◉ TVC:DXY , 🕐TF: 1D
Fig.3
We were able to predict the completion of wave (B) and the subsequent reversal in wave (C) with high accuracy.
Wave (C) is expected to take the form of a single zigzag subdividing into diagonal A and impulse C . The target may be the lower boundary of the ascending channel.
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◉ TVC:DXY ,🕐TF: 6h
Fig.4
For you, my dear readers, I can suggest a few trading setups that will appear in the near future:
The completion of diagonal A is a signal in favor of fixing a short position. Aggressive trading setup for opening a long position with a protective stop loss at the level ((v)) > ((iii)) .
The completion of the subsequent wave B (preferably in the form of a triangle) is a trading setup for opening a short position.
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●● Alternative count
◉ TVC:DXY ,🕐TF: 1W
Fig.5
The option of counting wave Ⓧ in the form of a flat ( color marking) we have already discussed earlier. On this chart, it would be more correct to focus on an alternative marking, which suggests considering wave (b) of the supercycle degree from the position of the completed running flat a-b-c , in which wave c is an impulse ①-②-③-④-⑤ . A confident breakdown of the upward channel down can serve as a good signal in favor of this hypothesis.
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DOLLAR INDEX - FUNDAMENTAL DRIVERSAn 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.
EUR USD - FUNDAMENTAL DRIVERSAn 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.
EUR USD - FUNDAMENTAL DRIVERSAn 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.