DXY (DOLLAR INDEX) Shorts from 107.000My view on the dollar is relevant to all major pairs I trade, including GOLD, GBPUSD (GU), and EURUSD (EU). This week, we are approaching a strong high point with a previous Wyckoff distribution on a higher timeframe, now entering a significant supply level on the 9-hour chart. I anticipate a reaction at this level followed by a temporary decline in the dollar.
I expect the dollar to drop at least to the newly established 12-hour demand zone, where I foresee a bullish continuation. This supports the broader bullish trajectory of the dollar, aiming towards tapping into a 2-month supply zone where a major bearish reaction is expected.
Therefore, if I anticipate the dollar to initially rise and then drop, I also expect EURUSD and GBPUSD to continue their downward trends accordingly.
Note that this is my current bias, and I will adjust it based on evolving market trends. It's essential to consider various zones and scenarios for a comprehensive analysis."
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Dxyindex
EURUSD: approaching a possible swing buying opportunity FX:EURUSD dxy remained extremely bullish in recent few weeks which resulted EURUSD to drop significantly leaving many gaps in the price action. What we want now for price to drop further which will result price to fall under the discounted price zone. This is the last chance for price to rebound, if it fails then price can falls further creating year's lowest low.
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.
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.
Major clues in USD indicate Bear market Late summer/ early fallHi guys. When trading its always important to learn/educate to find an edge on the markets.
There are so many charts you can access to analyze/compare, etc. Its known that many ticker symbols can be used in certain ways to help understand markets in a deeper way.
The DXY or U.S. Dollar Index is an asset that i use to assess Risk mentality.
So keeping it simple:
If dollar RISES -> it indicates a RISK OFF mentality -> so people leave risky investments to enter the safety that is cash
If dollar FALLS in price -> it indicates a RISK ON mentality -> this means peoplpe are leaving the safety of the dollar to take risk in other investments.
Im bringing you this analysis to assess the health of the broader markets and whether or not we are at risk of a down fall/ recession especially with tensions significantly rising in the Middle east.
So jumping right in.
I got 3 Red resistance trend lines drawn.
This trendline, in part reflects Bull runs in broader markets.
2 from past history
1 which is associated with our current Price action.
As you can see, this Resistance begins at the TOP price of DXY. Price is then supressed from a certain amount of time, before a breakout back ABOVE.
Everytime we have broken the resistance trendline. The dollar starts a massive Bull run when measured:
The 1st one lasted about 700 days
The 2nd one lasted about 460 days.
So the question i asked was how does this relate to the S&P and other markets.
Does the breakout above resistance from the start cause drops in all markets?
When i looked, i was surprised. Fall in other markets does NOT happen right off the breakout.
In fact, when i measured after the resistance breakouts it takes roughly 133-189 days before S&P begins a BEAR market.
As indicated by black lines.
1st example it took 133 days after breakout
2nd example took 189 days after breakout.
We have recently broken out ABOVE the red resistance trendline.
So if you consider previous history, our next Bear market i believe will begin sometime late Summer or early Fall.
Now remember previous history does not have to repeat. It just helps us find patterns and consider things.
It is however possible, if actual war does breakout. Things may change, as it would be considered a Black swan event.
However, until it happens this is the likely scenario in my OPINION. Our current movements i think is just a pullback before continuing higher.
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Thank you for taking the time to read my analysis. Hope it helped keep you informed. Please do support my ideas by boosting, following me and commenting. Thanks again.
Stay tuned for more updates on DXY in the near future.
If you have any questions, do reach out. Thank you again.
DISCLAIMER: This is not financial advice, i am not a financial advisor. The thoughts expressed in the posts are my opinion and for educational purposes. Do not use my ideas for the basis of your trading strategy, make sure to work out your own strategy and when trading always spend majority of your time on risk management strategy.
The USD in a ConundrumThe USD at the start of the year was trading near the 100 lvl but has managed to push above the 106 lvl in a little over a few months. If price is able to break out of the 107 lvl, there isn't to many resistances for the USD to break (the 108 could be one) and price might be able to hit the 114 lvl made in 2022. With the CPI data coming in a little higher then expected and traders/investors/analysts speculating that the FED will likely hold off on reducing rates (currently, FED Rate Monitoring tool is showing a 71.7% chance of FED holding rates), the elections coming up, conflicts in the Middle East/Europe/Asia, continued government spending (which keeps increasing), not enough government revenue which leads to more borrowing, this puts the FED between a rock and a hard place. Will the FED continue to hold rates and potentially push the economy to a recession (and a real one not one that did happen but supposedly didn't happen, back in 2022 Q1/Q2) or continue on with lowering rates, keep the economy going and potentially cause inflation to spike? Either way it is No Bueno.
What is interesting is how commodities such as Gold/Silver/Oil are pushing up higher while the USD pushes up higher. These products are typical non correlated to each other, yet, currently they are. The USD shot up to 106. Silver from the start of the year pushed up from near 22 to now coming close to hitting 30 before pulling back to below 28. Gold pushed lower to below 2,000 in the beginning of February and pushed above 2,440 before pulling back to 2,360. Oil began near 70 and is trading above 85. So, when things return to the mean (non correlated), either the USD will take a hit or commodities will. The main things is how much of a hit will happen. Risk assets such as the stock market are finally taking a hit as the market just kept climbing and climbing, with the DJ Futures Market pushing past 40k and finally being cracked in the beginning of April.
I am thinking that the USD might be able to hit the 108 lvl as other Central Banks are holding onto rates (just recently the ECB stuck to holding rates). If the FED holds onto current rates and other banks decide to reduce rates, the USD will skyrocket higher. If other banks decide to keep holding rates while the FED does, it will likely be whose economy can withstand the higher rates the longest.
Protect yourselves with either reducing position sizing to withstand a large move, hedge, or do not be in a trade and see if price moves how you are speculating it. I have no position on the USD or in Forex itself (I'm tied up in other trades), but I am watching this because it is part of the plan I have when my other positions in other trades are completed.
Y'all have some great trading out there.
📈DXY Daily Long Scenario / A Bearish Week Waiting For Gold?📉TVC:DXY
FXOPEN:DXY
Hello dear traders.
⚡️ In this post I will track the DXY movements from 12 Apr - 18 Apr.
📈 What to Expect?
💡As long as DXY is above the midline of the pitchfork structure, the bullish scenario is quite valid.
The bullish scenario targets are on the price chart.
⚠️Important Note⚠️:
The price movement has been drawn a little wider than the actual movement to make it better visible. The actual price trend is likely to be faster.
Do not hesitate to ask any question about the analysis.
CrazyS
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
🚨DXY Index Is Ready to Go Down by H&S Pattern🚨🏃♂️ DXY index is moving near 🔴 Heavy Resistance zone($105.88-$104.65) 🔴.
📈In terms of Classical Technical Analysis , the DXY index has succeeded in forming an Ascending Broadening Wedge Pattern and is currently completing the right shoulder of the Head and Shoulders Pattern .
💡Also, the Regular Divergence (RD-) between the right and left shoulders of the H&S Pattern is clearly visible.
🔔I expect the DXY index to continue its decline after breaking the 🟢 Support zone($104.26-$103.88) 🟢 around $103 .
U.S.Dollar Currency Index ( DXYUSD ) Analyze, 4-hour time frame⏰.
Do not forget to put Stop loss for your positions (For every position you want to open).
Please follow your strategy; this is just my Idea, and I will gladly see your ideas in this post.
Please do not forget the ✅' like '✅ button 🙏😊 & Share it with your friends; thanks, and Trade safe.
SasanSeifi 💁♂DXY/ Daily Hello,
The dollar index TVC:DXY started an uptrend from 100.600. After reaching the liquidity zone around 104.900, it faced a correction due to profit-taking by buyers. The correction extended down to the demand zone at 102.300.
The index has bounced back from the demand zone and is trading at 104.000.
The EMA is moving between the candlesticks, indicating a range-bound market.
If the daily candle closes with a strong body, we can expect positive movements towards 104.400 and 104.975.
We must observe how the price reacts at these levels to understand the further trend.
If the index breaks above 104.970/105 and consolidates, it can create a new high above 104.976 and potentially reach 105.500/106.
Otherwise, after ranging and confirmation of SELL in lower time frames, we may see a correction.
The key support levels are 103 and 102.350.
Remember, this is just a technical analysis and not financial advice. Always do your research before making any investment decisions.❗❌
I hope this analysis was helpful! If you have any questions, feel free to ask.🙌
DXY analysis 23 Mar 2024Monthly: The price has been showing strong resistance in M-BPR. So we could anticipate that the price has been started to fall down, If We get any Daily Bearish-MSS, After that we could go down.
Monthly Bias: Consolidation
Weekly: The price has been touched the W-FVG- There is a W-BSL resting in 105.00 level. So we could anticipate the price will take the W-BSL then start to move down. If we get any H4 Bearish MSS/CISD then our Bias towards the Down Side will confirm.
Weekly Bias: Consolidation
Daily: The price has been taken the D-BSL & Touched the D-FVG- So we could anticipate that in the up coming week we will be going down towards the D-SSL. If we get any H1 MSS then we can confirm that we are going down.
Daily BIas: Upward.
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.