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!
J-DXY
Potential bullish rise?US Dollar Index (DXY) has reacted off the pivot and could bounce to the 1st resistance.
Pivot: 107.49
1st Support 106.47
1st Resistance: 109.64
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GBP/USD - H1 Chart - Triangle Breakout (31.01.2025)The GBP/USD Pair on the M30 timeframe presents a Potential Selling Opportunity due to a recent Formation of a Triangle Breakout Pattern. This suggests a shift in momentum towards the downside in the coming hours.
Possible Short Trade:
Entry: Consider Entering A Short Position around Trendline Of The Pattern.
Target Levels:
1st Support – 1.2342
2nd Support – 1.2295
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XAUUSD 2/2/25XAUUSD remains clearly bullish this week. We can see this through price action and, of course, the Orion bias, which is also bullish. We've maintained a bullish bias since the last weekly low was created, and we’ve successfully followed this entire upward move over the past couple of weeks.
If you followed along, congratulations on a strong long-term trade! However, we are now focusing on intraday and day trading opportunities. Please note that we currently have no target, as price is sitting around the all-time high. We expect price action to continue reaching new highs, but exercise caution, as we are in an exploration phase, meaning price is moving into uncharted territory. Look for rebalancing, which presents opportunities to buy back into the next expansive move.
We have the V2 Entry Level Indicator running, and the dotted lines represent our high-volume lows—key areas of interest for identifying expansive moves into new highs. Right now, we have two priority lower areas, which we will monitor for potential re-accumulation of long positions. However, since we are in an exploration phase, price may continue moving higher without retracing to these levels.
Watch for one of two scenarios:
A pullback into the lower areas, followed by an expansive move upward.
Continuous expansive moves, with new lows developing along the way.
Regardless of how price unfolds, our bias remains the same unless the bias changes with the daily—we anticipate further expansion to the upside.
Trade within your risk parameters, follow your rules, and always let Orion guide you.
EURUSD 2/2/25Heading into this week, EUR/USD is the first pair we are looking at. We have a new filter applied with our Orion Entry Level V2, as well as the Orion System running in the background.
The bias has been shown as bearish, so we are looking for the following. Note the two pre-established highs above, along with a high that is yet to be recognized, as we have not joined the new trading week to confirm that candle closure. That gives us three highs to target and ultimately a heavy cluster of lows marked as the lowest target, along with a high-volume low just below the current price.
We're looking for an expansive move down, but overall, we would love to see a pullback into the highs beforehand, remembering that the higher timeframe is giving us our bearish bias. So because of this, we will look to follow it.
Remembering that we only take trades if the entries are given, and until we hit the points we want to trade from, we do nothing more than let the market run its course.
Trade to your risk, follow your rules, and always let Orion guide you.
WTI on high time frame
"Dear traders, concerning WTI, the price has touched $73 and has been technically rejected from this level. Candle formations on higher time frames suggest a potential increase in price. Considering the political and geopolitical factors outlined in this article (www.tradingview.com), if the price can hold above the $73 zone, my view is that the next target could be $76."
If you have any specific questions or need further assistance with your message, please let me know!
The Market Matrix - Gold, Crude, DXY & Nasdaq for Feb 1 2025This weeks edition of The Market Matrix.
Disclaimer
The information provided in this content is for educational and informational purposes only and should not be construed as financial advice, investment recommendations, or an offer to buy or sell any securities or financial instruments.
Trading financial markets involves significant risk, including the potential loss of capital. Past performance is not indicative of future results. You are solely responsible for your trading decisions and should conduct your own research or consult with a licensed financial advisor before making any financial decisions.
The creator of this content assumes no liability for any losses or damages resulting from reliance on the information provided. By engaging with this content, you acknowledge and accept these risks.
Dollar - Gold Market CorrelationThe Dollar (DXY) has closed extremely bullish this week. This is another confluence that we can see Gold (XAUUSD) start moving down soon or later.
As you all know the DXY & XAUUSD have negative market correlations, so when one moves up the other move down. The Dollar has been correcting down recently, which has led to Gold pushing up & creating new ATH’s. However, I now expect Dollar bulls to resume, which means we can see Gold get ready for a bear market in the mid term.
U.S Dollar Index (DXY) Rising Wedge Potential Reversal !!U.S. Dollar Index (DXY) on a 2-day timeframe, a rising wedge pattern. Here’s a breakdown of the technical analysis:
Key Observations:
1. Rising Wedge Pattern:
The price has been following an upward trajectory within two converging trendlines.
A rising wedge is typically a bearish reversal pattern, meaning a breakdown could lead to a decline.
2. Recent Price Action:
The index has recently dropped from its recent high near 108.107 and is now trading at 107.807.
This suggests that selling pressure is increasing.
3. 200 EMA Support:
The 200-period Exponential Moving Average (EMA) is currently at 104.510.
This is a key support level—if the price breaks down from the wedge, it may test the 200 EMA.
4. Potential Scenarios:
Bearish Breakdown:
If DXY breaks below the lower wedge trendline, the index could drop toward the 104.5-105.0 level (200 EMA).
A further breakdown may lead to a decline toward 102-100 levels.
Bullish Continuation:
If DXY bounces from current levels and reclaims the upper wedge resistance, it could push toward 110-112.
However, this is less likely given the wedge structure.
Conclusion:
The chart suggests a potential reversal in DXY.
A breakdown from the rising wedge could lead to a decline toward 104-105.
If bulls regain strength, DXY may attempt to push higher, but upside is limited.
Traders should watch for confirmation of a breakdown or bounce before making decisions.
XAUUSD - Gold hits new ATH!Gold is trading above EMA200 and EMA50 on the 1-hour timeframe and is in its ascending channel. A correction towards the demand zone will provide us with the next buying opportunity with a good risk-reward ratio.
Donald Trump has announced his intention to impose a 25% tariff on imports from Canada and Mexico due to the fentanyl issue, emphasizing that these tariffs will take effect starting Saturday. He also stated that China will eventually have to pay tariffs as well, and that the U.S. is already implementing trade restrictions against Beijing.
Trump further asserted that the era of passively watching BRICS nations attempt to distance themselves from the U.S. dollar is over. He declared that these countries must commit to neither creating a new BRICS currency nor supporting any alternative to the powerful U.S. dollar. Otherwise, they will face 100% tariffs and lose access to the thriving American economy. He insisted that BRICS has no chance of replacing the U.S. dollar in global trade, and any country attempting to do so will face severe economic consequences.
(Translation continues…)
Continuation of the English Translation:
Trump’s repeated tariff threats have raised concerns among American consumers and introduced economic risks for the United States. Even the mere discussion of such tariffs can have significant economic effects by influencing consumer behavior. Evidence suggests that many Americans are seriously worried about the potential consequences of these policies.
According to a survey conducted by economists from the University of Texas, the University of California, and the University of Chicago, Americans expect substantial tariffs to be imposed on all major trade partners—50% on Chinese imports and 35% on imports from Canada and Europe. Contrary to Trump’s claims, most citizens believe these tariffs will directly impact them by driving up prices. When asked about a hypothetical 20% tariff, half of the respondents stated that the majority of the costs would be passed directly to consumers.
Political differences are also evident in the perception of these tariffs. Democrats and Republicans disagree on the extent to which consumers will bear the costs. Democrats estimate that 68% of the tariff burden will fall on consumers, whereas Republicans believe it will be around 41%. Regardless of political stance, the financial strain from these tariffs is expected to be significant, particularly for consumers already weary of inflation.
Both the public and economists recognize that tariffs on imports can also raise prices for domestically produced goods. The economic impact of tariffs was clearly demonstrated during Trump’s first term. A study found that the tariffs imposed in 2018 on washing machines from South Korea and China led to a nearly equivalent price increase for washing machines in the U.S.—and even drove up the price of dryers as well.
Even if these new tariffs are not implemented, their mere threat can lead to price hikes. Many consumers, anticipating higher costs, are choosing to make purchases in advance. In a survey, 43% of respondents stated that they would buy products before the tariffs take effect to avoid potential price increases.Another survey in January found that 20% of people believed that now was the right time to buy durable goods because prices were likely to rise.
Businesses are responding in a similar fashion. Many companies are stockpiling inventory ahead of potential tariff hikes or shifting their supply chains to countries that would not be affected. This behavior has contributed to a surge in exports from China to the U.S., with December marking the second-highest export level on record—at least partly driven by efforts to preempt new tariffs.
These strategies, however, come with additional costs, much of which will likely be passed on to consumers. The COVID-19 pandemic provided a clear example of how supply chain disruptions can lead to widespread cost increases. For instance, higher import costs for auto parts eventually resulted in more expensive vehicle repairs and insurance premiums.
Stimulating inflation under current economic conditions—even temporarily—would be costly. The Federal Reserve has paused further interest rate cuts, waiting for clearer signs of sustained inflation reduction. Rising prices for key goods, particularly automobiles, halted progress in lowering inflation in the fourth quarter of last year. Additional inflationary pressures caused by tariff expectations could delay the Fed’s next rate cut and keep interest rates elevated for an extended period. The uncertainty surrounding future tariffs reinforces the Fed’s cautious stance.
Inflation is not the only concern stemming from tariff threats. A third of survey respondents indicated that the likelihood of widespread tariffs would lead them to cut spending and increase savings. The greater the uncertainty surrounding trade policy, the stronger the incentive for precautionary savings.
American consumers have been the driving force behind the nation’s economic recovery. However, the recent wave of tariff threats has created deep concerns, potentially putting the U.S. economy—widely regarded as one of the strongest in the world—at risk.
GBPUSD - Will the pound return to the bullish trajectory?!The GBPUSD pair is located between the EMA200 and EMA50 on the 4-hour timeframe and is moving in its ascending channel. In case of a downward correction, the pair can be bought within the specified demand zone.
British Prime Minister Keir Starmer stated that the government has clearly received the message regarding deregulation. He emphasized that simplifying regulations and removing certain restrictions could have a positive impact on economic activities and businesses. Starmer also highlighted the transformative potential of artificial intelligence in the economy. He added that the UK’s economic outlook is improving and that the government’s top priority is “growth, growth, and growth.” Additionally, he pointed to the significant trade partnership between the UK and the United States, stressing that this economic collaboration could play a key role in the country’s future growth.
Meanwhile, analysts at TD Securities believe that the Federal Reserve will refrain from cutting interest rates in the first half of this year. This decision is attributed to the persistence of core inflation and the resilience of the U.S. economy in the first quarter, which keeps policymakers cautious. Furthermore, the potential economic impact of new tariffs under a Trump administration in the second quarter reinforces this outlook.
Although the Federal Reserve officially bases its decisions on economic data, TD Securities argues that political influences are becoming increasingly significant in shaping monetary policy. According to TD, Trump’s role in U.S. monetary policy is growing. As a result, the institution maintains a bullish outlook on the U.S. dollar and sees any rate cuts as buying opportunities, particularly against the euro, Canadian dollar, and British pound.
At the same time, analysts at Goldman Sachs believe that the Federal Reserve will wait for further progress in reducing inflation before proceeding with additional rate cuts. However, they still expect the Federal Open Market Committee (FOMC) to implement two 0.25% rate cuts later this year, in June and December, with an additional cut projected for 2026.
Additionally, economists at Citi anticipate that the Federal Reserve’s preferred inflation gauge—the 12-month PCE inflation rate—will decline in the coming months as the effects of the sharp price increases from early 2024 begin to fade. They also note that both the six-month and three-month core PCE inflation rates are on a downward trajectory and are expected to fall below 2.5%.
Gold XAUUSD Possible Move 30.01.2025The price is currently testing a well-defined descending trendline, which has acted as a strong resistance level. The analysis suggests two possible scenarios:
Bullish Breakout & Retest:
If the price successfully breaks above the trendline and confirms a retest as support, we could see bullish momentum leading to the 2,785.04 resistance level.
A clean breakout with strong volume would further validate the upside potential.
Bearish Rejection & Retest:
If the price fails to break above the trendline and gets rejected, we could see a retest of the trendline followed by a strong move downward.
The next major support level in this case would be 2,730.75, where price could find buying interest.
Traders should watch for confirmation on the breakout or rejection before taking a position. The reaction to the trendline will be the key factor in determining the next move.
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AUDUSD - 4H Why we need to Buy?!The FX:AUDUSD has shown strong bullish momentum after hunting liquidity below the 2022 low on the daily and weekly timeframes.
✅ Breakout & Retest: The pair successfully broke the descending channel's resistance and is now pulling back to the breakout zone, confirming its strength.
✅ Higher High Formation: A higher high structure supports the bullish bias, indicating potential continuation towards previous highs and beyond.
📌 I expect another bullish push from this key support zone.
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