DXY trade ideas
DeGRAM | DXY has broken the downward structureThe DXY is under a descending channel above the trend lines.
The price has broken the upper trend line.
The chart maintains a harmonic pattern and has already broken the descending structure.
We expect a rise after consolidation above the resistance level.
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Smart Traders Watch the Fed — Smarter Ones Watch the DollarHello Traders 🐺
In this idea, I decided to talk about the U.S. Dollar Index (DXY) — because so many people have been asking me:
“How do you predict the Fed’s moves, and how do they affect deflationary assets like BTC?”
My last idea was about BTC, where I explained why I believe a major bull run is coming — and part of that is because the Fed might soon shift back to QE.
But if you're trying to predict QE...
The first thing you need to watch is the U.S. Dollar Index, which reflects the strength of the U.S. Dollar.
So let’s break it all down:
🔍 Part 1: What Does the Fed Actually Do?
The Fed isn’t just a printer — it’s the U.S. central bank, and it has a dual mandate:
✅ Keep prices stable (control inflation)
✅ Promote maximum employment
That means the Fed doesn’t just want growth — it wants sustainable growth. No crazy inflation, no deep recession. Balance is key.
🧰 How Does the Fed Do It?
Through Monetary Policy, which is basically the toolkit used to control liquidity, interest rates, and economic behavior (like how much people borrow, spend, or save).
Let’s break down the main tools:
1️⃣ Federal Funds Rate
This is the most powerful tool the Fed has.
It’s the rate banks use to lend to each other overnight.
If the Fed raises the rate:
→ Loans get expensive
→ Spending slows
→ Inflation drops
→ But markets can crash
If the Fed cuts the rate:
→ Loans get cheaper
→ Demand rises
→ Growth accelerates
→ But inflation can surge
2️⃣ Open Market Operations (OMO)
This is how the Fed injects or removes liquidity using bonds.
Buys bonds → Injects money → 🟩 QE (Quantitative Easing)
Sells bonds / lets them expire → Removes money → 🟥 QT (Quantitative Tightening)
3️⃣ Reserve Requirements
This used to be a big deal — the % banks had to hold in reserves.
But since 2020, it's set to 0%.
4️⃣ Discount Rate
The interest rate the Fed charges banks directly.
A change here sends a strong signal to the markets.
Sometimes the Fed also works in sync with the U.S. government — using fiscal support like:
💸 Stimulus checks
🏢 Corporate bailouts
🧾 Tax relief packages
📈 So... Why Does the Dollar Index (DXY) Matter?
There’s a very clear inverse correlation between the DXY and BTC.
When the dollar gets stronger (DXY pumps), BTC usually dumps.
Why? Because rising DXY often means:
🔺 The Fed is raising rates
🔺 Liquidity is being pulled out
🔺 QT is in play
Let me show you some real chart examples:
📉 July 2014 — DXY pumped → BTC dumped hard
DXY Chart:
BTC Chart:
➡️ Just a 28% DXY pump → 80% BTC crash. Ouch.
📈 2017 — DXY dropped → BTC entered full bull market
DXY Chart:
BTC Chart:
➡️ A 15% DXY drop → Bitcoin bull run of a lifetime.
Now here’s the good news 👇
DXY is starting to look very bearish on the chart:
Combine that with the Fed shifting to QE, and guess what?
We're likely entering the early stages of another bull market.
If you read my last BTC idea, you already know what I’m expecting...
🚀 A massive run is just around the corner.
I hope you found this idea useful, and as always —
🐺 Discipline is rarely enjoyable, but almost always profitable 🐺
🐺 KIU_COIN 🐺
DXY NEXT MOVE AND MARKET EFFECTThe US Dollar Index (DXY) is currently testing a major multi-year support zone around the 99.70–100.00 level. This level has held firm multiple times in the past, acting as a strong demand area during key macroeconomic cycles. Right now, price action is showing indecision with a clear do-or-die moment forming. If bulls defend this zone, we could witness a significant bullish reversal, potentially targeting the 103.00–105.00 range. However, a decisive break below this support could trigger a bearish wave toward the 96.00 handle or even lower.
Technically, this zone is not just psychological, but also a structural demand region, aligning with previous swing lows and price pivots. We’re seeing a potential for either a double bottom reversal or a breakdown structure forming, depending on how the market reacts in the coming sessions. Price is extremely oversold on higher timeframes, which could fuel a relief rally if momentum shifts. The reaction here will be key for broader market direction, especially as the dollar plays a pivotal role across forex majors.
Fundamentally, the DXY is under pressure as recent U.S. macro data reveals weakening momentum. March CPI printed hotter than expected, but other indicators like core PCE, NFP softness, and signs of slowing consumer demand are fueling expectations that the Fed may be nearing a policy pivot. At the same time, global risk sentiment is improving and yields have pulled back slightly, putting pressure on the greenback. However, rising geopolitical tensions and elevated oil prices continue to support USD as a safe-haven asset.
As a professional trader, this is a critical level to watch. I’m keeping an eye on price action confirmation for either a bullish engulfing setup or a clean break and retest of the 99.50 level. Both scenarios offer high-probability trades. Patience here is crucial — let the market reveal its hand, then align with the momentum. Dollar volatility is likely to remain elevated heading into next week, so managing risk with clarity is key.
DXY Starts the Bearish Trend!DXY Starts the Bearish Trend!
Yesterday, the DXY made a clear breakout on the daily chart from a strong structure zone located near 106.20. Since that moment, the DXY hasn't paused, leading to a weakening USD. Even if the DXY corrects, it is expected to be short-term. The DXY may test the 105.7 - 106.20 range as a maximum before a more significant bearish wave occurs.
The U.S. dollar dropped to a near three-month low against major peers on Wednesday, following the latest round of U.S. tariffs and countermeasures from Canada and China, which stoked fears of an escalating trade war.
Fears about weaker U.S. and global economic activity are driving the sell-off.
You may find more details in the chart!
Thank you and Good Luck!
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USD Oversold on Weekly & Fibonacci Support TestWeekly charts can be helpful for tracking the motion of the ocean, or larger dominant trends. And so far in 2025, that trend has been quite bearish for the US Dollar and this showed up even with the Greenback coming into 2025 with a full head of steam.
But last week something that's somewhat rare showed up - as weekly RSI on DXY went into oversold territory for only the second time in the past seven years.
The last time this happened was August of 2024, and that was followed by the Q4 reversal in the USD. And before that - it was all the way back in early-2018, which is around when DXY marked a major low that still hasn't been traded through.
This isn't to say that RSI is an automatic indication of reversal because it's not - it's simply a lagging indicator that shows how one sided a trend has been of late. But - it does illustrate how chasing the USD lower could be a challenge here especially given how quickly bears have come on over the past couple of months.
There's also some Fibonacci support that's in-play which is very near support in the range of USD that held for a couple of years before the Q4 breakout. The 61.8% retracement of the 2021-2022 major move plots right at 98.98, which has so far held the lows in DXY.
Of interest and perhaps a bigger component of this move is whether EUR/USD will be able to establish a reversal at or around the 1.1500 handle. And that's a question mark right now, because from a data and driver perspective, it would seem that the backdrop is there as US retail sales printed with strength this week, and Chair Powell sounded somewhat hawkish around the prospect of inflation given the tariff situation. And then the ECB rate cut on Thursday sounded dovish - all factors that would normally be expected to push EUR/USD weakness.
The fact that it hasn't happened is of interest as this could be a bigger picture dominant trend showing it's hand. As I shared in the EUR/USD post which I'll link below, bulls are still in charge of the pair from a price action perspective so accordingly I would still assume bears are in-control of USD until evidence suggests otherwise. In DXY, it's the 102 level that I would like to see traded through as illustration of bulls taking control. -js
DXY Support Ahead! Buy!
Hello,Traders!
DXY keeps falling down
In a downtrend but the
Index will soon hit a
Horizontal support
Of 100.200 and after
The retest a bullish rebound
Is to be expected
Buy!
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(SMC) and key liquidity zones aligning for a major bearish reverThe U.S. Dollar Index (DXY) is tracing out its final wave of the Elliott 5-wave structure, with a powerful confluence of Smart Money Concepts (SMC) and key liquidity zones aligning for a major bearish reversal.
Wave (iv) correction might offer the last sell opportunity before a deep wave (v) drives us into the golden demand zone near 91–93.
Watch closely:
Fair Value Gap (FVG) & Order Block aligning at resistance
Wave (iii) completed with strong momentum
Massive bearish pressure setting up for 2025–2026
Next Move?
We’re tracking the wave (iv) pullback into the SMC zone, looking for entries to ride wave (v) down.
Get ready for a potential macro-level shift in dollar strength!
#DXY #ElliottWave #SMC #ForexAnalysis #DollarIndex
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.DXY (U.S.DOLLAR INDEX) M30 ANALYSIS UPDATES
🔍 **Chart Overview:**
- The chart shows a recent **bearish movement** after a double top pattern, indicated by the red arrows.
- Price has dropped significantly and is approaching a **key support zone** around **99.209 – 99.253**.
- A potential **bullish reversal** is anticipated from this support zone.
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🧠 **Trade Idea:**
✅ **Bullish Scenario (Primary Setup):**
1. **Wait for price action** confirmation around the support area **(99.209 – 99.253)**.
2. Once bullish confirmation appears (e.g., bullish engulfing, pin bar, or double bottom), look for **buy entries**.
3. **First target:** **99.839** (minor resistance zone).
4. **Final target:** **100.607** (major resistance & previous high).
❗️**Invalidation:**
- If price breaks and closes **below 99.209** with strong bearish momentum, the bullish idea becomes invalid and further downside may be expected.
. 🧩 **Strategy Notes:**
- This setup assumes a potential **V-shaped recovery** after a liquidity grab below the recent low.
- Watch for **U.S. economic data releases**, as marked on the chart – they may trigger volatility and impact DXY movement.
DXY Will Fall! Short!
Here is our detailed technical review for DXY.
Time Frame: 1D
Current Trend: Bearish
Sentiment: Overbought (based on 7-period RSI)
Forecast: Bearish
The market is trading around a solid horizontal structure 99.769.
The above observations make me that the market will inevitably achieve 96.117 level.
P.S
Please, note that an oversold/overbought condition can last for a long time, and therefore being oversold/overbought doesn't mean a price rally will come soon, or at all.
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DXY BEARISH TRENDDXY has been on a bearish movement since December, heading to the strong resistance of monthly and weekly timeframe. Currently trapped inside 4hours consolidation zone, if we see breakout to the down side, this will be continuation of the down movement to the monthly resistance before the new uptrend will start. But if the breakout is to the upside, meaning there will be a short bullish movement before another strong fall DXY. this will help to know what Gold and other USD pair is about to do in our analysis. What is your view? comment below.
DXY – Bullish BAT Harmonic Pattern Formed
✅ Overview:
Pattern Identified: Bullish BAT
Current Trend: Bearish
Reversal Zone: Near 0.886 Fibonacci level (Potential PRZ – Potential Reversal Zone)
Bias: Short-term bearish ➝ Medium-term bullish
🧩 Pattern Structure:
X to A: Initial bullish leg
A to B: Retracement ~38.2%–50%
B to C: Extension to ~88.6%
C to D: Final bearish leg completing near 0.886 of XA
→ D point is the potential long entry zone
📈 Trade Plan – LONG Setup (Once PRZ is Hit)
Entry:
Buy near the 0.886 level of XA leg (watch for reversal candles or structure break)
Wait for confirmation on lower timeframes (1H or 4H)
Stop Loss:
Below the X-point or slightly below 0.886 zone
Targets:
TP1: 0.382 retracement of AD
TP2: 0.618 retracement of AD
TP3 (Optional): Break and retest of structure above B point
R:R Goal: At least 1:2
⚠️ Key Considerations:
Short-term DXY is still bearish; wait for reaction at PRZ
Ideal to pair with bullish divergence or support zone confluence
Watch for fundamental catalysts (CPI, NFP, Fed speakers) impacting USD strength
Despite long-term support, the dollar is eyeing deeper watersAlthough the US Dollar (USD) Index has connected with a monthly support area between 98.72 and 99.67, April’s lower low at 99.01 reached levels not seen since early 2022 and price crossing below the 50-month simple moving average (SMA) at 101.91 potentially questions this support zone.
Bolstering the likelihood of additional downside in the USD are the daily and H4 charts. The former exhibits scope to reach support at 98.58 (and formed a Death Cross ), while the latter completed a bearish pennant pattern (ruptured the lower boundary), extended from 100.64 and 99.01. As you can see, H4 action is currently retesting the underside of the breached pattern’s border.
In view of the above technical surroundings, USD shorts could have some gas left in the tank.
Dollar Daily CLS I Key Level - FVG I Model 1 it goes bellow 100.Hey, Market Warriors, here is another outlook on this instrument
If you’ve been following me, you already know every setup you see is built around a CLS range, a Key Level, Liquidity and a specific execution model.
If you haven't followed me yet, start now.
My trading system is completely mechanical — designed to remove emotions, opinions, and impulsive decisions. No messy diagonal lines. No random drawings. Just clarity, structure, and execution.
🧩 What is CLS?
CLS is real smart money — the combined power of major investment banks and central banks moving over 6.5 trillion dollars a day. Understanding their operations is key to markets.
✅ Understanding the behaviour of CLS allows you to position yourself with the giants during the market manipulations — leading to buying lows and selling highs - cleaner entries, clearer exits, and consistent profits.
🛡️ Models 1 and 2:
From my posts, you can learn two core execution models.
They are the backbone of how I trade and how my students are trained.
📍 Model 1
is right after the manipulation of the CLS candle when CIOD occurs, and we are targeting 50% of the CLS range. H4 CLS ranges supported by HTF go straight to the opposing range.
📍 Model 2
occurs in the specific market sequence when CLS smart money needs to re-accumulate more positions, and we are looking to find a key level around 61.8 fib retracement and target the opposing side of the range.
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