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dxy doller down trend be care full Description
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US Dollar index forecast ahead of CPI US dollar bulls have seemingly halted their accension as they wait for the U.S. inflation data that is due this Tuesday.
The market is predicting that August's headline CPI may edge lower by 0.1%, further strengthening the case that US inflation has peaked.
Even so, it is said that the US dollar has priced in an 85% chance of a 75-basis-points rate hike from the US Federal Reserve next week, Wednesday. Fed chair Jerome Powell has reiterated several times over the past few weeks that the central bank is not yet looking to taper off the pace of their rate hikes.
Looking at the current price action solidifying ahead of the CPI, the DXY pulls back after the RSI reaches above the 70 level, highlighted in the circle, signaling that the price is overbought. The dollar index fell to a one-week low of 108.900, just below an area that has recently acted as a pivoting point.
The wick from last week’s last candle suggests that a demand zone might be causing a firm rejection below 108.900, at least until the CPI data remains unknown for the next 48 hours.
It may be too soon to say that the upwards momentum has been disassembled. As such, the expectation of a bullish push is still in play, and the price may still reach targets suggested by the Auto Fib Retracement Indicator. Targets in play include last week's peak at 110.700, and 111.950 a little further afield.
The DXY price closing within the plausible demand zone at 108.000 - 109.000 will open the DXY to bearish price targets indicated on the chart, including 107.300, 106.750, and 106.200.
20 Reason for Long DXYUpdate 07/09/2022
1 Structure 1/2: Bear
2 imbalances : Correction target marked
3 Current Move1/2 : Corrective
4 Entry TF : D1
4.1 ETF Structure: Bull
4.2 move : impulse
5 Support Resistance: Pull Back support waiting
6 FIB: waiting according to drawing for buy entry
7 candle Pattern: shrinking candles
8 Chart Pattern:
9 Volume : decrease correction now
10 Momentum: Bullish
11 Volatility : Divergence
12 strength: full favor of bulls
13 Sentiment : No1
14 Final Summary: go with Bull buys all signs are favor of buyer
15Buy /Sell/Wait : wait for buy
16 Entry:108.222
17 Sl: 107.555
18 Tp: 114.555
19 Risk to reward Ratio: 1:13
20 Excepted Duration : 45
How High Can The DXY Go Without A Correction?? SHORT then LONG?The Dollar is surging and nothing seems to be stopping it the DXY has been rallying for nearly 16 months straight without a correction. We have just taken out the 2002 September high this also being at a SUPPLY/SELL zone from 2002.
I suspect we may get a short term correction soon down towards the newly created DEMAND/BUY zone between 103.5 -100 this would be a nice area for buyers to come back in.
If the correction does happen the long term target could well be above the 117 level which is also a SUPPLY/SELL zone which sits bang on the 50% level of the overall range taken from the overall highest to lowest points you would expect strong selling here.
Giving the current moves on the dollar it could literally run straight up to the 117 area without stopping though i suspect a correction to 103 will happen I will wait for a weekly or daily close back inside 110 area and a SELL signal on my indicator to occur to confirm the correction.
If it does correct to the 103 area i will again wait for confirmation BUY signal and price action to reconfirm the move up.
DXY- And up we brokeOn the 26 of August, I said that I expect a break up from DXY, and last Thursday we had this break.
NFP caused a spike down for the index, but bulls quickly managed to recover.
I expect this break to be a genuine one and DXY to continue its up trajectory.
A break above 110 could lead to a test of 112.
My previous DXY analysis:
DXY monthly forecast ahead of NFP At August’s close, the USD can be said to have performed exceedingly well against its trading partners. The DXY climbed 3.2% over the month. Now it heads into a very important Non Farm Payrolls result, and investors will be looking for clues as to the USD’s next move.
The Non Farm Payroll data for August is released on September 2, 2022, and is perhaps more eagerly anticipated than normal. The reasons for this are detailed in Monday's market review Pound and gold head lower before NFP data.
The worst performing USD pair over the past month has been the Pakistani rupee (USD/PKR), which fell by more than 8.0%. But this movement against the USD was far from the norm.
The movements of other currencies include:
GBP/USD, fell by 5.2%
NZD/USD, fell by 2.9%
EUR/USD, fell by 2.1%
AUD/USD, fell by 1.9%
USD/INR, rose by 1.4%
USD/RUB, rose by 1.7%
USD/CAD, rose by 2.1%
USD/CHF, rose by 2.5%
USD/JPY, rose by 5.3%
We can look at the DXY chart on the monthly timeframe to try to ascertain whether the USD can sustain this upside momentum.
Thus far, technical analysis is maybe suggesting that the US dollar still has plenty of space to move toward the upside.
The monthly candle’s 107.500 resistance area, which is now broken, opens traders to scope out higher levels of resistance including 110.00 and 116.500. The former of which the Dollar index is currently butting up against.
Further afield, traders may want to keep the 2-decade high of 120.000 in the back of their mind. Such a lofty prediction is seemingly backed-up by an upcoming US Federal Reserve interest rate decision.
On the other hand, traders should be wary as well. The price could also create a monthly pullback as the Williams %R indicator is currently planted in the extreme upper range above 20%, which indicates that the price might be in overbought territory.
This Means Buy $DXY?This count is based on my assumptions so anything can happen not a trading or financial advice just for educational purposes only kindly do your own ta thanks trade with care good luck.
⁉️ DXY - Market AnalysisHello traders!
⁉️This is my analysis on DXY .
Here we are still bullish, so I am looking only for longs. I expect price to make a retracement after taking out buy side liquidity and rejecting from 110.000. My point of interest is bullish orderblock around price level 105.500.
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Dollar In ranging, Short expectedNow Dollar index consolidate on108.3-109.3. If breakout then dollar gonna another high to 111.2; If NFP data will negative, Dollar gonna 106.3 and go on.
Big Picture! Dollar now on solid bullish trend or up trend and still dominates the higher price.
DISCLAIMER
Remember, there is no place for luck in trading - only strategy!
This analysis can change at anytime without any update and it is only for the purpose of assisting traders to make independent investments decisions. We are the only one person who is responsible for our physical, mental health, relationships, success, and money in our lives. So taking a trading or investment risk on the markets based on this idea. You deserve the profit and you are responsible for your potential loss. Any opinions, news, research, analyses, prices, or other information discussed in this idea.
Here i anticipated by price action, please do not consider investment advice, Because i'm not your official financial advisor. The author of this analysis does not accept liability for any loss or damage.
DXY - DOLLAR Next Move 30 - AugustDXY - Dollar Technical Analysis Chart Update
Time Frame - H4
In Long Time Frame #LTF we have Double Bottom and its Rejecting from the Second Top
We have Strong Selling Divergence in Daily Time Frame
In Short Time Frame #STF its following BULLISH CHANNEL if it breaks the Lower Trend Line and #LTL and retest then its confirm Sell
Current Level ( Daily Resistance Level ) is a strong level we need to wait for rejection or Breakout