DeGRAM | DXY dollar strengthened againThe DXY is in an ascending channel between trend lines.
The price has already reached the upper boundary of the channel and the dynamic resistance, which previously acted as a pullback point.
During the growth in the channel, the chart formed a gap.
We expect a pullback.
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Dxyanalysis
DXY Analysis & ConsiderationsOverall Trend & Context:
Long-Term Uptrend: The DXY exhibits a clear uptrend from late 2023, indicating persistent USD strength.
Key Levels:
Resistance Zone (109.50 - 110.00): This zone has proven a challenge for the DXY to break decisively. A sustained break above this level is crucial for further upside.
Support Zone (107.00 - 108.00): This zone has provided support during pullbacks.
EMAs (25, 50, 100, 200 - 4-Hour Chart): The DXY is trading above all EMAs, a bullish sign. The 25 EMA is acting as dynamic support, and a bullish crossover (25 above 50) has occurred.
Potential Scenarios & Probabilities:
Bullish Breakout (High Probability) : The bullish EMA alignment favor an upside breakout above 110.00. Increased volume would confirm this scenario.
Pullback to Support/EMAs (Medium Probability) : A pullback towards the support line or the 25 EMA (around 108.80 - 109.00) is plausible, especially given the overbought RSI. This could offer a good long entry opportunity.
Breakdown Below Support (Low - Medium Probability) : A break below the support line and the EMAs would weaken the bullish outlook and could lead to a deeper correction.
Trading Considerations:
xxxUSD pairs - If the dollar goes up we should look for short positions.
USDxxx pairs - If Dollar goes up we can look for long positions.
A pullback to the support zones or the 25 EMA could offer a lower-risk long entry, provided these levels hold and there is sufficient demand on the USDxxx pair you're trading. (technicals should always be prioritized)
Consider placing stop-loss orders below key support/demand levels to manage risk.
Look for increased volume during breakouts or bounces off support to strengthen signals.
Watch for bearish divergence on the RSI as a potential bearish warning sign on the DXY.
Geopolitical Factors:
De-dollarization Efforts: Some countries are exploring alternatives to the US dollar for trade and reserves. While this is a long-term trend, any significant announcements or actions could impact the dollar's value.
Sanctions and Trade Policies: US sanctions and trade policies can influence the dollar's strength, particularly against the currencies of targeted countries. The US imposed tariffs are creating ripples right now.
Let's quickly look at what 'tariffs' are -
By now you should all know about the US imposed tariffs on several major trading partners including China, Canada and Mexico (and that they've retaliated with their own tariffs on US goods).
What does this all mean?
In the US any goods that are imported from Canada for example, will now cost more to the general public. To put it simply, the US is now charging a "handlers fee" and that will increase the overall price.
These tariffs are intended to encourage these countries to change their trade practices.
The tariffs have disrupted global supply chains, increased costs for businesses, and created uncertainty.
Make no mistake, this is without a doubt, a trade war.
Potential Impacts on the US Dollar:
Positive Impact:
Safe-haven demand: Increased global economic uncertainty due to the trade war could drive investors towards the US dollar as a safe-haven asset, increasing demand and its value. People will flock to the take no s#it protocols implemented by the Trump administration.
Reduced imports: If tariffs lead to a significant decrease in US imports, there could be less demand for foreign currencies to purchase those imports, indirectly increasing demand for USD. This means that trade conducted by the US will increase the overall Dollar output - thus making it seem more valuable. (If we assume the Trump administration is playing petty games, we're badly misinformed, we should assume that these are well calculated risks)
Negative Impact:
Reduced US exports: Tariffs can make US goods less competitive, leading to a decrease in exports. This can reduce foreign demand for USD, as fewer foreign buyers need dollars to purchase US goods.
Economic slowdown: The trade war could negatively impact economic growth in the US and globally. A slowdown in the US economy could make the dollar less attractive to investors.
Retaliatory tariffs: If other countries retaliate with their own tariffs on US goods, it can further dampen US exports and reduce demand for the dollar.
Trade Wars and Uncertainty:
The uncertainty and potential for escalation associated with trade wars can negatively impact investor confidence and lead to a flight to safety. While the USD is often seen as a safe haven, extreme uncertainty could lead investors to seek other safe-haven assets or reduce their overall exposure to USD (Right now Gold is something you should be looking into as a trader and investor).
Final Notes:
The technical picture is strong and does favour a breakout. But the geopolitical risks reduce the probability. Be prepared for fundamentals to override technicals in the short term.
Given the heightened risks, traders should be cautious and wait for clear confirmation signals before taking positions.
Closely follow news related to the debt ceiling, economic data, and geopolitical events.
Disclaimer: This analysis is for informational purposes only and does not constitute financial advice. Trading involves substantial risk and may not be suitable for all investors. Conduct your own research and consult with a financial advisor before making any investment decisions.
DXY Dive Incoming? Watch the Liquidity Zones!From the higher timeframe perspective, DXY is currently hovering within a key monthly Fair Value Gap (FVG), marked in red. This zone serves as a critical point of interest and could dictate the next directional bias for the dollar.
Key Observations:
Current FVG Zone:
-Price is consolidating within the monthly FVG. A close below this zone would provide stronger confirmation of a bearish move targeting lower liquidity levels.
Bearish Bias:
-The recent price action indicates weakness as sellside liquidity (SSL) is beginning to show signs of attraction.
-The presence of significant sellside liquidity targets below, including:
-105.411 (Weekly SSL - Sweep)
-103.370 (Weekly SSL - Next Zone)
-100.215 (Major Daily SSL Zone)
Messy Market Conditions:
-Due to fluctuating macroeconomic factors, including USD news events, we may observe temporary rallies or retracements. However, these are likely to form lower highs before continuing the descent.
Confirmation Levels:
-Bearish Confirmation: A daily or weekly close below the monthly FVG would solidify the bearish case, signaling that sellside liquidity at 105.411 and lower levels are likely next.
-Bullish Risk: If the current FVG holds as support and price pushes higher, we could see an attempt to retest higher zones (e.g., 109.535) before resuming downside momentum.
Conclusion:
The expectation is for DXY to drop towards sellside liquidity levels at 105.411, 103.370, and potentially as low as 100.215. However, traders should await a clean confirmation (such as a close below the monthly FVG) to validate the move.
DYOR (Do Your Own Research) and trade safely amidst potential market volatility!
Let me know if you'd like any refinements!
US DOLLAR INDEX : DXY READY TO FLY !! great opportunity !- The US Dollar Index (DXY) is showing strong signs of bullish momentum as it bounces off key support levels and begins to break through short-term resistance.
- I draw a bars pattern to show you exactly how DXY will balance next weeks.
The strategie that i used is very unique, just follow bars pattern up and down.
- Fundamental Drivers: Positive US economic data and expectations of potential Fed rate hikes support the bullish outlook for the USD, adding confidence to the trade.
- This setup offers a great opportunity to catch the next leg of the US Dollar’s potential rally. Happy trading! 📈
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📰🗞️Fundamental, Macro, Sentimental Outlook
The DXY (Dollar Index) market is expected to move in a bearish direction, driven by several key factors.
🔴Fundamental Analysis
The DXY is a geometrically weighted index that tracks the value of the US dollar against a basket of six major currencies: the euro (57.6%), Japanese yen (13.6%), British pound (11.9%), Canadian dollar (9.1%), Swedish krona (4.2%), and Swiss franc (3.6%). The index is influenced by interest rates, inflation, and economic indicators such as GDP and employment rates.
🟠Macro Analysis
The US Federal Reserve's monetary policy decisions significantly impact the DXY. With the Fed's rate hike cycle, the US dollar has strengthened against other major currencies. However, the recent decline in US Treasury yields has put pressure on the dollar.
🟡Market Sentiment
The market sentiment for the DXY is currently bearish, with 71% of IG client accounts short on this market. However, some analysts believe that the dollar's decline has been overdone and expect a rebound.
🟢Retail Traders' Sentiments
Retail traders' sentiments are mixed, with some expecting a bullish move and others predicting a bearish trend. On TradingView, some analysts have identified a potential bearish pattern, while others see a bullish reversal.
🔵Upcoming Events
The upcoming events that may impact the DXY include:
Federal Reserve Meeting: The Fed's interest rate decision and monetary policy statement may influence the dollar's value.
US GDP and Inflation Data: The release of US GDP and inflation data may impact the dollar's strength.
Trade Developments: Any updates on US trade policies, particularly with China, may affect the dollar's value.
🟣Trading Expectations
Based on the analysis, it's challenging to predict a clear direction for the DXY. However, considering the bearish market sentiment and potential bearish patterns, a neutral to bearish move is possible in the short term. Keep a close eye on upcoming events and market developments to adjust your trading strategy accordingly.
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XAUUSD - Gold Enters the Last Week of January!On the 4-hour timeframe, gold is above the EMA200 and EMA50 and is in its ascending channel. If gold rises to the previous ATH, we can look for selling positions at the ceiling indicated by the target of the midline of the ascending channel. A correction of gold towards the demand zone will provide us with its next buying position.
Last week, the gold market showcased one of its most stable and impressive performances in recent months, seemingly adapting to the shocks and uncertainties introduced by the newly established U.S. administration.
Darin Newsom, Senior Market Analyst at Barchart.com, highlighted that given global markets’ reaction to the unpredictability of the new U.S. president, there appear to be few barriers to new record highs for gold. He stated, “At this point, we can set aside technical and fundamental analysis. Gold is acting as a safe haven against the chaos stemming from the new U.S. government. No one knows what the next statement or action will be.”
According to the latest U.S. Purchasing Managers’ Index (PMI) report released by S&P Global, the services sector index dropped to 52.8, marking its lowest level since April of last year and falling below market expectations of 56.5. Meanwhile, the manufacturing PMI rose to 50.1, exceeding the forecasted 49.7. The composite PMI also decreased to 52.4.
Although confidence in the services sector has declined from its 18-month peak in December, it remains the second-highest level recorded in the past year.Additionally, the services sector experienced the fastest rate of job creation in 30 months. Input costs and selling prices across sectors also rose at the fastest pace in four months.
Chris Williamson, Chief Economist at S&P Global, commented on the data, stating that U.S. businesses began 2025 with optimism about the new administration’s policies. In particular, growth expectations in the manufacturing sector have increased due to anticipated government support. He also noted that while GDP growth slowed slightly in January, sustained business confidence suggests this slowdown may be temporary. The rise in hiring rates, driven by improved business outlooks, is another encouraging sign.
However, Williamson warned about increasing inflationary pressures. Companies reported that rising supplier costs and higher wages, driven by labor shortages, have led to price increases. If this trend continues, concerns about inflation could intensify, prompting the Federal Reserve to adopt more hawkish policies.
Rich Checkan, President and COO of Asset Strategies International, predicted that gold might experience a price correction in the short term. He explained, “While the long-term trend for gold remains bullish, thanks to the mismanagement of fiat currencies, I anticipate a price correction this week. Gold has approached historical highs today, but uncertainties surrounding the upcoming Federal Open Market Committee (FOMC) meeting could prompt investors to take profits, leading to a temporary price pullback.”
This week, officials from major central banks worldwide will convene to make critical decisions. These meetings come as discussions about President Trump’s tariff threats resurface. The Federal Reserve, the European Central Bank (ECB), and the Bank of Canada (BoC) are all scheduled to hold their monetary policy meetings this week.
DeGRAM | DXY pullback in the channelThe DXY is in an ascending channel between trend lines.
The price is moving from the upper boundary of the channel and dynamic resistance.
The chart has fallen below the support level.
We expect the pullback to continue
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DeGRAM | DXY seeks to close the gapDXY is in a descending channel between trend lines.
After the gap formation, the price has reached the lower boundary of the channel, the support level and the lower trend line, which previously acted as a rebound point.
The chart approached the 38.2% retracement level and is now holding above the resistance level.
We expect the rebound to continue if successfully consolidated above the resistance level.
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DXY- Start of correction?In my previous analysis of the DXY, I mentioned that the index might begin a correction after more than three months of upward movement and a 10% increase.
Yesterday, the market opened with a downside gap and broke below the rising trendline that had been supporting the price since the 100 mark. This suggests that 110 could now serve as a local top. As long as the price remains below this level, shorting the USD currency could present a viable trading opportunity.
I am currently looking for buying opportunities in currency pairs such as EUR/USD, GBP/USD, AUD/USD, and NZD/USD.
DXY (INDEX) analysis This chart shows the U.S. Dollar Index (DXY) on the 1-hour timeframe. Key observations:
1. **Support Zone**: The shaded grey area around 108.800–109.000 is acting as a strong support zone, with multiple rejections visible.
2. **Rounded Retest**: There seems to be a rounded retest pattern forming, suggesting bullish momentum might build if the price sustains above this level.
3. **Structure**: Break of structure (BOS) and change of character (ChoCh) markers indicate recent shifts in momentum. The latest BOS suggests the potential for bullish continuation.
4. **Key Resistance**: Immediate resistance is visible near 109.400–109.600. A breakout above this could lead to further upside.
5. **Strategy**: Watching for bullish confirmation above the support zone or at breakout levels could be prudent. Alternatively, failure to hold this zone may lead to bearish pressure.
DeGRAM | DXY growth in the channelThe DXY is in an ascending channel above the trend lines.
The price is moving from the lower boundary of the channel and the support level.
The chart has broken the descending structure.
We expect the index to continue rising after consolidating above the resistance level, which coincides with the 50% retracement level.
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DXY could start correcting soonThe last quarter of 2024 was exceptionally bullish for the DXY, with the price climbing from 100 to a peak around 109—a substantial 9% increase in a relatively short period.
The bullish momentum has continued into the start of 2025.
However, since late December, the price action has become more overlapping, which could indicate the potential for a reversal.
At present, the price remains above the bullish trendline, so there are no clear reversal signals yet.
That said, it’s important to monitor for a downside break. If such a scenario occurs, the index could drop toward the 106 support level.
DeGRAM | DXY decline in the channelThe DXY is in an ascending channel between the trend lines.
The price is moving from the upper boundary of the channel and has already dropped below the trend line.
We expect the index to continue its decline in the channel.
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DeGRAM | DXY held the supportThe DXY is in an ascending channel between the trend lines.
The chart maintains an upward structure and has already reached the 62% retracement level.
We expect growth.
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Bearish drop?US Dollar Index (DXY) has reacted off the pivot and could potentially drop to the 1st support.
Pivot: 109.38
1st Support: 108.53
1st Resistance: 110.17
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