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DXY Weekly Analysis Here's the corrected version: Last month, we anticipated that the #DXY price would continue to be bearish and take support liquidity from Mon 10 Jul '23. However, the fundamentals contradicted last month's analysis as the #DXY strengthened again after inflation rise and the Fed announced they would keep interest rates fixed until the next meeting. It's probable that we will see a Bullish trend in DXY this year if there's no decrease in inflation or interest rates. This highlights the importance of fundamentals in this quarter. From a technical perspective, we observe weakness in breaking the support liquidity in #DXY, indicating that it will likely rise again and target Mon 02 Oct '23 for short-term liquidity. For the long term, we anticipate the price will reach a fair value in the MON 07 Nov '22 liquidity gap as the long-term target.
TVC:DXYLong
by Deotrade1
DXY Dollar Index Technical Analysis and Trade IdeaIn this presentation, we conduct an in-depth examination of the technical aspects related to the DXY. Our evaluation uncovers a possible trading prospect. We conduct a detailed review of the prevailing price movements, examine the market's framework with precision, and take into account the forces at play in the market. Given the advantageous circumstances, we pinpoint a prospective point of entry. Nonetheless, it is imperative to emphasize the importance of applying strong risk management measures. It is important to remember that the content of this video is intended solely for educational purposes and is not to be interpreted as investment advice.
TVC:DXY
by fxtraderanthony
Emerging Markets Struggle as the Mighty Dollar FlexesThe recent strength of the US dollar is posing a significant challenge for emerging markets around the world. Their currencies are weakening, creating a ripple effect across their economies. This article explores the reasons behind the dollar's dominance, the impact on emerging markets, and potential policy responses. A Rising Dollar: The Driving Forces The US dollar has been on a tear in recent months, appreciating against most major currencies. This surge can be attributed to several factors, including: • US Federal Reserve Policy: The Federal Reserve's aggressive interest rate hikes aimed at curbing inflation are attracting investors seeking higher returns on dollar-denominated assets. This increased demand strengthens the dollar. • Global Economic Uncertainty: As concerns about a global economic slowdown grow, investors flock to the perceived safety of the US dollar, seen as a safe haven asset during times of turmoil. • Geopolitical Tensions: The ongoing war in Ukraine and heightened tensions between the US and China are further fueling risk aversion, pushing investors towards the dollar. Emerging Markets Under Pressure The rise of the US dollar presents a major headache for emerging markets. Weakening local currencies lead to several problems: • Imported Inflation: When the local currency weakens, the cost of imported goods rises. This can exacerbate inflation in emerging markets, which are already grappling with rising prices due to global supply chain disruptions. • Debt Burden: Many emerging market economies have significant dollar-denominated debt. A weaker local currency increases the cost of servicing this debt, putting a strain on government finances. • Capital Flight: The strengthening dollar can trigger capital outflows from emerging markets as investors seek better returns elsewhere. This can lead to currency depreciation and hinder economic growth. Policy Responses: Verbal Intervention and Beyond Emerging markets are not sitting idly by as their currencies weaken. Several are exploring policy options to counter the dollar's might: • Verbal Intervention: Central banks in some emerging markets, like Malaysia, have resorted to verbal intervention, signaling their commitment to supporting their currencies. However, this approach has limited long-term effectiveness. • Interest Rate Hikes: Some central banks, such as Brazil, are considering raising interest rates to attract capital inflows and stabilize their currencies. However, this risks slowing down economic growth. • Currency Intervention: Central banks may intervene directly in the foreign exchange market by selling dollars and buying local currency to prop it up. This approach can be expensive and depletes foreign exchange reserves. JPMorgan and ANZ Weigh In: The Need for More Tools Financial institutions are also analyzing the situation. JPMorgan Asset Management suggests that more verbal intervention may be necessary from emerging markets to manage volatility. However, analysts at ANZ bank believe that China, a major emerging market with significant influence, may need to deploy a wider range of tools, potentially including capital controls, to limit the depreciation of its currency, the yuan. Looking Ahead: A Delicate Balancing Act The coming months will be critical for emerging markets. Central banks face a delicate balancing act, trying to tame inflation without stifling economic growth. The strength of the US dollar will be a major factor influencing their decisions. The ability of emerging markets to navigate this challenging environment will have a significant impact on the global economic outlook.
TVC:DXYLong
by bryandowningqln
DXY Still have some move to the upside**Monthly Chart** Last month's candle closed bullish and as a key reversal to the upside indicating a continuation move of DXY to the upside at least to 106 level and balancing monthly engulfing levels at 107. This tells me that other pairs such as EURUSD & GBPUSD still have room to move lower to the discount zone (extreme demand zone) before deciding to move higher. Note: I don’t trade DXY but I use it as an indication when analyzing other currency pairs linked to USD. **Weekly Chart** There is a weekly High at around 105 level followed by a liquidity pool imbalance between 106 and 107 level. These levels will be critical for DXY if it wants to break to the upside. However, last week candle closed as doji (indecision) which was due to low movements in the market last week. **Daily Chart** Last week move was only a continuation of the upswing of the previous week which coiled near the MC candles of 14 Feb 2024. I will be watching the market reaction near the weekly high and look for a sign to suggest the next move for other pairs against USD.
TVC:DXYLong
by PropSignals
1
DXY update before PMI price is near the resistance 0f 104.750 >> 104.800 >> 105 now the question whether the price sweep or run through this liquidity ??? as price has made higher high and higher lows with recent bos we are looking to buy instead of going short during the impulsive momentum candle price has left behind some bullish fvg which are pending below at the level of 103.700 level before this we have higher low (this higher low could be the liquidity before 103,700 i dont see any major fvg or ob as of 4h time frame price currently going all time high which need to take a pullback to fuel the upside move again the candle formed since 27th march are mostly sideways following a trending which is another area of liquidity laying below it
TVC:DXY
by Jimmy_Rebello
DXY Directional Bias is now Bearish**Weekly Chart** As Expected in our previous analysis DXY coiled near MC Candle of 14th Feb 2024. Note: Please refer to our last week analysis. **Daily Chart** Last week DXY moved higher only to break the high of the previous MC, balance the IPA (FVG) candle of Nov 2023, and tricked retail traders by moving slightly higher before started dropping and creating another MC candle. On Friday 5th April 2024, DXY tried to move higher again but it failed and created a key reversal and tested the smaller liquidity candle of 3rd April before moving lower. The reason this reached a weekly high and dropped below it, suggests a move lower in the next couple of weeks. The first target is around 103 and the second target is around 102.50 (the previous weekly low).
TVC:DXYShort
by PropSignals
1
DXY Analysis: Potential Retracement AheadI'm closely monitoring the DXY (US Dollar Index) for indications of the dollar's trajectory into the weekend and early next week. The US dollar's influence on global markets makes the DXY a critical reference point for traders. Given the strong correlation between many currency pairs and the US dollar, the DXY's current position at a key resistance level suggests a potential pullback. The dollar appears overextended, and coupled with typical end-of-week trading patterns, we may see a significant retracement impacting broader markets. Important Disclaimer: This analysis is intended for educational purposes and should not be interpreted as financial advice.
TVC:DXY
by fxtraderanthony
1
DXY 4HR ANALYSIS READ DESCRIPTIONThe US Dollar Index (DXY) is currently hovering around a crucial support area ranging from 104.1 to 104.3. The significance of this support zone lies in its potential to dictate the future direction of the dollar. If the support holds and the price action confirms a bounce, it could signify strength in the dollar, potentially leading it towards the 105 level. Conversely, if the support fails to hold and the price breaks below it, we might see the dollar weakening further, potentially targeting the 103 level. Examining the technical aspects, several indicators suggest a bullish outlook for the dollar. The Moving Average Convergence Divergence (MACD) indicator is signaling a buy, indicating the potential for upward momentum in the dollar's price. Additionally, both the Exponential Moving Average (EMA) and Simple Moving Average (SMA) from the shorter 10-day to the longer 200-day periods are suggesting a buy signal. This alignment across multiple moving averages underscores the strength of the bullish sentiment in the market. Analyzing the recent trading activity, the last day's trading summary reveals a predominantly bullish sentiment towards the dollar. With 45 buy signals, compared to only 4 sells and 7 neutrals, it's evident that market participants are largely optimistic about the dollar's prospects. This positive sentiment could further support the case for a potential rise in the dollar's value, especially if the support area holds and price action confirms a bullish reversal. In summary, the US Dollar Index is currently testing a critical support zone, with potential implications for its future trajectory. Technical indicators such as the MACD, EMA, and SMA are suggesting a bullish bias, while recent trading activity reflects a predominantly bullish sentiment. Traders should closely monitor price action around the support area for confirmation of either a bullish reversal or a breakdown, which would guide their trading decisions accordingly. As always, risk management remains paramount, and traders should implement appropriate risk mitigation strategies to protect their positions in case of unexpected market movements.
TVC:DXY
by MOAZAM1133
💡 DXY: Forecast Next week💲DXY: Last week, DXY had a surge after the FOMC meeting and reached its highest level of the week around 104.2. Regarding technical analysis, we can see that DXY has broken through the Downtrend line and the key level 103.5 - 103.7. With this development as well as the strong increase in the last 2 days of the week, I will appreciate the upward trend for DXY for the new trading week. The target area for DXY will be the next key level area 104.5 - 104.7. You can wait for DXY to back test the trendline and key level around 103.7 and create a reversal signal to continue buying positions.
TVC:DXYLong
by Stone_Haven