Dxyindex
DXY DXY Weekly TF Forming Head and Shoulder Pattern It's Bearish pattern
DXY Dump then all others Market will pump increase
DXY Weekly Market out look 6 July 2024Weekly: Price has closed bellow the W-FVG+ so we could anticipate the market will go down towards the W-SSL (103.996).
Weekly Bias: Bearish
Daily: The price has been created a D-MSS with a D-FVG-, so we could expect in the up coming week the price could retest the D-FVG- then go to wards down side.
Daily Bias Bearish.
Selling pressure on USD is increasing and in the current contextDXY: USD index today is maintaining below 105.20.
After consecutive drops beyond the support level, the USD is in a continuing downtrend
Investors should pay attention to protect profits with BUY positionsShows that selling pressure on USD is increasing and in the current context, information about the US is getting worse, causing the USD to weaken. Regarding technical factors. Because it has broken out of the uptrend zone, it is expected that the market will have a slight retest of the trend and then continue to decline. You can consider maintaining a sell watch with USD today.
Is the correction coming?If we analyze the current dynamics of TVC:DXY , there is a probability that in the third quarter of 2024 the index will come out of accumulation and reach the levels of 109.535 and 113.148.
Note that the growth of TVC:DXY is usually accompanied by a correction in the financial markets.
DXY: there will be a correction todayDXY: The USD index yesterday fell sharply, penetrating the support zone and creating a head and shoulders pattern that can be clearly observed in the H1 frame in the context of negative information focusing on the US yesterday. And the FOMC meeting somewhat supported the USD's adjustment, but not significantly. Regarding technical factors this morning, DXY tested the neckline again, so it is likely that USD will continue to decline today. Consider maintaining a short position with USD.
TWO POSSIBLE SETUPS ON THE $I currently see a very strong dollar, but is this a classic fueled movement or does it have some foundation?
According to my idea we could see a decline very soon. It could be followed by a rise before taking action, which is why I leave you two possible setups on the dollar.
Always use your head, this is not a copy and paste but reasoning to do together.
DXYAnalysis of the dollar index
Time frames of 4 hours and 1 hour
The dollar index can move according to the specified path and its target is 106.600.
DXY IndexPair : DXY Index
Description :
Bullish Channel as an Corrective Pattern in Short Time Frame
RSI - Divergence
Break of Structure
Completed " 1234 " Impulsive Waves
CHoCH
USD firm with decision from FedMarkets are awaiting a release of crucial US Final GDP data today, which is expected to tick up from an annualized rate of 1.3% to 1.4%.
A meaningfully higher or lower number might change expectations of when the Fed will begin rate cuts.
According to the CME FedWatch tool, the next rate hike is expected in September this year.
In the Forex market, the Australian Dollar is the strongest major currency since the Tokyo open, while the US Dollar is the weakest.
However, it is worth noting that the US Dollar remains within a valid long-term bullish trend.
US New Home Sales data came in just a fraction below expectations yesterday.
The Governor of the Bank of England will be holding a press conference about the Financial Stability Report today.
There will be releases of Unemployment Claims and Pending Home Sales later today in the USA.
The USD price is still on the rise and solid when information about future bond interest rates increases. However, we do not rule out the case that the Fed will reduce inflation to stimulate employment and strengthen the economy. international
DXY:C has bearish GAP reactions amid election newsDXY: The USD index is having transient reactions withinside the establishing consultation of the week with GAP falling sharply in a touchy context because of election news. In phrases of technical factors, with this GAP pressure, it's far viable that the USD will witness a bigger correction that could increase the buildup variety to the 105.6 area. You can keep in mind quick promoting the USD today.
$DXY 's structure is weakening?#dollar index #dxy chart has made a bearish divergence and a minor dump occured after divergence. And chart has additional bearish patterns thus , a correction will likely be necessary. Not financial advice.
DXY moved into a narrow range but looks bullish**Monthly Chart**
DXY has been moving into a long-term range between 107 and 100 levels (round numbers) from January 2023. Last month candles closed lower after creating manipulation candles on monthly. This month's candle (currently active) tested the low of the previous two months and pushed higher with the NFP announcement last Friday. This moved DXY back into a narrow range.
Note: I don’t trade DXY but I use it as an indication when analyzing other currency pairs linked to USD.
**Weekly Chart**
Last week the DXY closed higher after testing the daily swing low and liquidity pool around 104 level. It closed as a weekly bullish key reversal (low test) candle pattern which indicates a move of the price will be bullish for next week. The next target will be around 106, followed by 107.34 levels.
**Daily Chart**
You can see the impact of NFP and Employment Change that created a massive bullish candle on Friday after testing the Imbalance price action (IPA) for the entire week near the previous daily low and liquidity pool. This candle is a new IPA that will need to be tested for liquidity again this week. I will be looking for a retracement towards at least 50% of this candle which will provide a second confirmation that the move for DXY will be bullish for the upcoming weeks.
This is another indication to look for selling opportunities for other currencies against the USD. Such as EURUSD, AUDUSD, and GBPUSD to go short for this week.
DXY: USD index still maintains bullish stanceDXY: The USD index yesterday received both good and bad news. Therefore, we see that the USD largely maintains a state of accumulation and adjustment. On the Daily frame, a fairly positive candlestick is formed around the 105.70 threshold. However, in today's session, DXY is at risk of a deeper correction to around the 105.50 - 106.00 area and maintains its accumulation state today. You can consider buying USD when DXY returns to the 105.5-105.6 area.
DXY increased in price abnormallySometimes, it’s not worth overcomplicating things.
While the (negative) correlation between real yields and gold has deteriorated in recent months, after-inflation interest rates remain one of the biggest factors driving the performance of the yellow metal.
With the benchmark US 10yr Treasury yield carving out a potential near-term bottom last week and rising to a two-week high today, gold accordingly topped out last week and has fallen to a two-week low. Now moving forward, the key level for bond and gold traders to watch will be the 4.31-2% level that has served as consistent support/resistance dating back to at least 2022. If yields can rally above that level, it could spur on another leg lower in gold prices.
DXY is strong when it releases 1-year bond yields, but this is just a temporary move when things are not going well for US data
Strong DollarDollar Looks Bullish From my Analysis, And As Other Countries Cutting Interest Rates and US Refusing to Cut Interest Rates Supports my Analysis even More.
XAUUSDWe are with gold rising to the points we set, the target being 2331 and then 2338, and if the point is broken, we target 2344 and 2354.
XAUUSDWe are with gold rising to the points we set, the target being 2331 and then 2338, and if the point is broken, we target 2344 and 2354.
DXYPair : DXY Index
Description :
Symmetrical Triangle as an Corrective Pattern in Long Time Frame
Completed " 12345 " Impulsive Waves
Break of Structure
Bullish Channel as an Corrective Pattern in Short Time Frame
RSI - Divergence
Strong Dollar: Geopolitics , US Economy & Tech Drive Currency UpThe US Dollar Index (DXY) is experiencing a surge, reaching unprecedented highs. This brief explores the key drivers behind this trend, including geopolitical dynamics, contrasting macroeconomic conditions, and the US's dominance in the technology sector.
* Geopolitical Uncertainty: Heightened tensions in the Middle East, particularly the potential escalation between Israel and Hezbollah, raise concerns of regional instability. Historically, such events trigger a "flight-to-safety" phenomenon, where investors seek refuge in stable currencies like the US Dollar. Additionally, the potential for increased terrorist activity and political unrest in Europe as a consequence of these tensions could further propel capital flight towards the US, bolstering the Dollar's value.
* Favorable US Macroeconomic Fundamentals: The US economy exhibits robust performance compared to Europe, characterized by strong GDP growth, low unemployment rates, and relatively stable inflation. This economic strength is further amplified by the Federal Reserve's stance on maintaining higher interest rates to combat inflation. These factors make US assets more attractive to investors, driving up demand for the Dollar.
* US Technological Preeminence: The US is a global leader in technology, housing some of the world's most influential companies like Apple, Nvidia, Microsoft, and Google. This concentration of tech giants fosters significant economic growth and innovation. Moreover, it attracts substantial global investment into the US, further strengthening the Dollar. Conversely, Europe lags in the technology sector, limiting its ability to attract similar investment flows. This technological disparity incentivizes investors to favor US markets, contributing to the Dollar's appreciation.
In conclusion, the rising Dollar Index is a result of a confluence of factors. Geopolitical tensions, particularly in the Middle East, are prompting investors to seek safe havens. The robust US economy and its dominance in the technology sector offer further advantages compared to Europe. As these dynamics unfold, the trend of a rising Dollar Index is likely to continue, presenting both challenges and opportunities for investors globally.
DXY MARKET FORCASTSince the beginning of the week, the DXY has been giving us a correction after last week's impulse move. The market has already broken above the correction area, which was a downtrend in the smaller timeframes. Therefore, I'm expecting the DXY to continue pushing up further, as it has been respecting the setups from my previous analysis. This means the DXY will likely continue rising, and on the other side, we'll be looking for sell opportunities in the gold market and dollar pairs.
USD/CAD:USD Faces Pressure Amid Eurozone Political UncertaintyEid Mubarak to all our Muslim brothers and sisters,
Permit me to do a detailed commentary of economic event on EUR, CAD, and USD.
Eurozone Political Instability Impacting the Euro
The Euro remains under significant pressure, primarily due to escalating fears of a financial crisis in France. Political turmoil and economic instability in the Eurozone, particularly in one of its key economies, have shaken investor confidence. This instability has led to a weaker Euro as investors seek safer assets, impacting currency markets globally.
Canadian Dollar Strengthens on Positive Economic Data
The Canadian Dollar, commonly referred to as the Loonie, saw a notable increase in value on Friday. This upward movement was driven by positive economic data from Canada, which reported a 1.1% rise in factory sales. The stronger-than-expected performance in the manufacturing sector has boosted investor confidence in the Canadian economy, thereby strengthening the Loonie.
Federal Reserve's Policy and Its Effects on USD
The Federal Reserve's recent policy meeting introduced a slightly hawkish tone, which initially led to a rise in expectations of interest rate cuts. However, following the meeting, these expectations have diminished. The Fed’s stance suggests a cautious approach to monetary policy adjustments, which has implications for the USD's strength. The reduced likelihood of significant rate cuts has provided some support to the US Dollar.
USD/CAD Outlook and Market Sentiment
Looking at the USD/CAD outlook for Monday, bearish momentum is evident as the US Dollar experiences a decline. This drop is largely attributed to the ongoing political uncertainty in the Eurozone, which has ripple effects across global financial markets. Despite the Fed’s hawkish hints, the prevailing sentiment reflects a cautious approach among investors, influenced by geopolitical and economic concerns.
In summary, while the US Dollar initially climbed due to Eurozone instability, the overall outlook for USD/CAD appears bearish. The interplay between Eurozone political issues, positive Canadian economic data, and the Federal Reserve’s policy stance will continue to shape market dynamics in the near term.
Cheers and happy trading!
DXY MARKET FORCAST ON MONDAYOn the 1-hour time frame, the DXY is ranging between 105.505 and 105.774. If the market breaks below 105.505, we anticipate buying opportunities in the gold market. Conversely, if it breaks above 105.774, we expect selling opportunities in the gold market. This is my current perspective on the DXY. From these key levels, the market has been respecting. Last week, the DXY formed an inverse head and shoulders pattern, followed by an impulsive move. Currently, it might be forming a correction or a bullish flag. We will wait to see which direction it breaks before pursuing opportunities in the gold, GBP/USD, and EUR/USD markets.
