THE DOLLAR INDEX HAS FINALLY BROKEN THE DOWNWARD TRENDLINETVC:DXY (Dollar Index) has been in massive downward trend from the beginning of the year 2025 which was very bad for the Dollar. as from the previous weeks, we have been seeing the dollar index making some significant moves is very interesting as this will cause pairs like USDJPY to start pumping as well, because USDJPY is correlates positively with DXY why pairs like EURUSD,GBPUSD AND GOLD will be dropping. As a matter of fact let's see close the daily candle above the current.resistance level before anticipating for any massive move.
NOTE: THIS IS NOT A FINANCIAL ADVICE DO YOUR RESEARCH.
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DXY trade ideas
DXYDXY needs some more correction, if the correction is completed before Feds decision then a drop can follow otherwise Feds will push it up and NFP will drop it again.
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USD to continue down?: Weekly Review/ fundamental analysis There was a lot of information to take in during the week starting Monday 28 July. A US / EUR trade deal announcement, US GDP, MICROSOFT earnings all contributed to positive market sentiment as the S&P continued to push all time highs. But in a reminder that anything can happen, a combination of NFP, AMAZON earnings and fresh TARIFF UNREST, ensured the week ended on a sour note.
The week got off to a good start with the US / EUR announcement. Although the news weakened the EUR as it appeared the US got the better end of the deal. And all of last weeks EUR positivity was unwound.
Despite the overall positive market mood at the beginning of the week, the currencies once again didn't quite correlate with the environment, as the USD and JPY both started the week particularly strong. Which could have been put down to 'EUR liquidity', meaning the USD and JPY benefited most from the weakness of the EUR. But, more likely, I suspected it was 'positioning' ahead of the important central bank interest rate meetings.
The meetings didn't disappoint, starting with the FOMC. The overall message was a continued reluctance to immediately cut interest rates. In a thinly veiled dig at the president, the line, "looking through inflation by not HIKING rates" sent the USD soaring as the probability of a September cut dropped to 40%.
A few hours later it was the BOJ'S turn. Although acknowledging inflation, a reluctance to immediately HIKE rates disappointed JPY bulls. And when added to positive MICROSOFT earnings, by Thursday's European session we had a peak JPY short opportunity.
But, alas, it wasn't long before disappointing Amazon earnings and the president stirring the tariff pot rocked the boat. And when Friday's NFP data 'surprised to the downside', the rot set in, the S&P dropped and in particular, sentiment for the USD crumbled. And the probability of a September rate cut significantly rose back up to 90%.
It's difficult to trade NFP at the best of times, but particularly when ISM data shortly follows. But I wouldn't argue with anyone who fancied a USD short on Friday.
I begin the new week with an open mind. I do think the S&P has a good chance of recovering (it's only natural for traders to use bad news as an excuse to take profits from all time highs). Sentiment for the USD could remain subdued, I suspect the US 10year will be a prominent part of the narrative.
On a personal note, outside of trading, drunk idiots smashing a bakery window and a member of staff leaving at short notice kept me busy. But I did manage one trade. A post BOJ 'short JPY'. It was coin toss between a post FOMC 'USD long' or a standard 'risk on AUD long'. I plumbed for the AUD. Ultimately, it wouldn't have mattered and the trade it profit.
Please feel free to offer thoughts questions, maybe you've spotted something I've not mentioned.
Results:
Trade 1: AUD JPY +1.3
Total = +1.3%
DXY weekly outlookDXY Weekly Outlook
This week, I’m watching to see if the dollar continues its bearish trend or breaks above the current supply zone. We've already seen a strong reaction from the 8hr supply, but price could still tap into the 1hr supply before making its next move.
If price drops from here, I’ll be looking at the 2hr demand zone below for a possible bullish reaction. If DXY pushes up from that zone, pairs like EU and GU could drop — which lines up with my overall short bias on those.
Gold may not always move in sync with the dollar, but DXY still gives a good idea of market sentiment.
Let’s see how it plays out and stay reactive.
Bullish reversal?US Dollar Index (DXY) is falling towards the pivot and could bounce to the 1st resistance, which is an overlap resistance.
Pivot: 96.99
1st Support: 96.38
1st Resistance: 97.90
Risk Warning:
Trading Forex and CFDs carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Forex and CFDs may not be suitable for all investors, so please ensure that you fully understand the risks involved and seek independent advice if necessary.
Disclaimer:
The above opinions given constitute general market commentary, and do not constitute the opinion or advice of IC Markets or any form of personal or investment advice.
Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, are intended only to be informative, is not an advice nor a recommendation, nor research, or a record of our trading prices, or an offer of, or solicitation for a transaction in any financial instrument and thus should not be treated as such. The information provided does not involve any specific investment objectives, financial situation and needs of any specific person who may receive it. Please be aware, that past performance is not a reliable indicator of future performance and/or results. Past Performance or Forward-looking scenarios based upon the reasonable beliefs of the third-party provider are not a guarantee of future performance. Actual results may differ materially from those anticipated in forward-looking or past performance statements. IC Markets makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or any information supplied by any third-party.
USDX at a crucial price point, which will decide trendThe next few candles for USDX price will be extremely important to understand where the dollar index is headed.
Based on that, we'll be able to choose 'which' Forex pairs we can trade, and more importantly 'how' we can trade them.
If price starts to follow the green line, and takes out 99.000, we'll be in an uptrend.
If price goes back to the red line and eventually goes below 96.400, we'll be in a downtrend.
Hopefully price won't consolidate too much, and trend in a particular direction.
Why a USD Bounce Could Trigger a Stock PullbackThe US Dollar has faced brutal selling during the first half of 2025. Some are even questioning whether the Dollar’s global hegemony is at risk. Early in the year the US stock market AMEX:SPY sold off aggressively, falling 19% from mid‑March to early April. Since then stocks have more than regained their losses and the Dollar is still in the tank. So where does that leave us for the rest of the year?
The Dollar Inverse Correlation
The US Dollar has an inverse correlation to most everything. Stocks, bonds, crypto, commodities, real estate — all are measured in Dollars. Therefore when the Dollar loses value, all things equal it takes more of them to reach the same value those assets were denominated at before. Conversely when the Dollar rises, other assets lose value in Dollar terms. Here we can see a long standing inverse correlation to stocks AMEX:SPY
Dollar in oversold territory
The Relative Strength Index (RSI) is a momentum oscillator that measures the magnitude of recent price changes on a scale from 0 to 100 to help identify overbought (above 70) or oversold (below 30) conditions. The Dollar has hit oversold several times so far this year, but not yet staged a material recovery.
Stocks in overbought territory
Meanwhile stocks have staged a blistering rebound off the "Liberation Day" driven selloff earlier this year. The S&P 500 now sits at an all‑time high, and you guessed it, has tapped overbought twice this month.
USD is fundamentally attractive
Because investors seek to earn the highest available yield on their capital, they tend to move funds into currencies offering higher interest rates (and away from those with lower rates), so differences in policy rates across countries create incentives for cross‑border borrowing and lending that drive FX flows. For example the Fed ( ECONOMICS:USINTR ) is at 4.5%, and the ECB ( ECONOMICS:EUINTR ) is at 2.15%. Moreover the Dollar is down significantly against major trading pairs that have lower yields. In our prior example the Dollar is down 11.98% against the Euro YTD (1- FX:EURUSD ), leaving substantial room for capital gains. Gravity could lure FX traders back in the second half of 2025.
Tariff calculus
Tariffs tend to bolster the imposing country’s currency in two main ways: by making imports more expensive they reduce import volumes, improving the trade balance (i.e. fewer foreign‑currency outflows), and by collecting duties in domestic currency the government effectively withdraws that currency from circulation, increasing its relative scarcity. Both effects lift demand for—and support the value of—the home currency.
Putting it all together
Despite the TVC:DXY ’s ~10.8% YTD slide and repeated oversold conditions, the compelling carry trade sets the stage for a USD bounce that, in turn, could pressure overextended equities. With stocks stretched and the Dollar oversold, the carry‑driven rebound in USD could well presage a pullback in equities. Stocks are expensive, Dollars are cheap 🤑
Dollar Reversal? Inverse Head & Shoulders Spotted!Is the Dollar Index bottoming out? I break down a potential Inverse Head and Shoulders pattern forming on the DXY chart — a classic reversal setup that could signal a major trend change. See as I analyze the key neckline breakout zone, potential upside targets and golden zone fib support defended confirming the pattern.
I hope you find this informative. Thank you for the boosts, comments and discussions of the idea. Cheers and best wishes on every trade
# USDCHF, #AUDUSD, #USDJPY, #EURUSD, #GBPUSD Forex pairs
IS A HIGHER LOW SECURED ON THE DXY? LET'S FIND OUTIn this weekend analysis, I am still paying attention to the higher time frame downtrend on the dollar index while acknowledging the higher low support on the daily chart forming an inverse Head and Shoulders pattern. On the 4H and lower timeframes we have a strong ceiling made up of the 200SMA and 50SMA resistance level and need to break through from the 20SMA Line in the sand support. This weeks trade plan and thesis is for price to hold above the 20 SMA on the 4H timeframe expecting a potential dip to the zone of 97.128 (liquidity zone) and then bounce up to a weekly target of 97.7. This Thesis is INVALIDATED if a candle opens and closes below 97.015. I wish everyone a great trading week. Thank for supporting my publications and trade ideas. Cheers!!!
Bullish bounce?US Dollar Index (DXY) is falling towards the pivot which aligns with the 78.6% Fibonacci retracement and could bounce to the 1st resistance.
Pivot: 97.00
1st Support: 96.48
1st Resistance: 97.77
Risk Warning:
Trading Forex and CFDs carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Forex and CFDs may not be suitable for all investors, so please ensure that you fully understand the risks involved and seek independent advice if necessary.
Disclaimer:
The above opinions given constitute general market commentary, and do not constitute the opinion or advice of IC Markets or any form of personal or investment advice.
Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, are intended only to be informative, is not an advice nor a recommendation, nor research, or a record of our trading prices, or an offer of, or solicitation for a transaction in any financial instrument and thus should not be treated as such. The information provided does not involve any specific investment objectives, financial situation and needs of any specific person who may receive it. Please be aware, that past performance is not a reliable indicator of future performance and/or results. Past Performance or Forward-looking scenarios based upon the reasonable beliefs of the third-party provider are not a guarantee of future performance. Actual results may differ materially from those anticipated in forward-looking or past performance statements. IC Markets makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or any information supplied by any third-party.
DXY forecast From weekly view the DXY is looking bearish at least till 95.123 key level the will see if we get a bullish power as the DXY is forming a reversal pattern. But of course many factors plays part in this economy, for example, global news like Tariffs and other factors.
So when DXY is trading on the 95.123 key level additional confluence will give us the right to put on trades, as the 95.123 key level is significant for what will take place next.
Take you all.......
Decision Zone for DXY This Week: Around 97.600After a significant downward expansion in DXY, we observed a consolidation around last week's low. This week, the market opened with a pullback.
The first stop for this pullback appears to be the current daily fractal high candle and the weekly bearish FVG on the chart. We can assess potential selling pressure from this area on lower timeframes. We'll be monitoring the wicks within this zone, along with any newly forming FVGs.
If the price breaks above this area, our next points of interest will be the gaps within the zone above the 0.5 swing level, and ultimately the swing high itself as the final target.
Given the current setup, we believe there are promising trading opportunities on EURUSD.
Take care until the next update!
The $ Index ~ Elliott Wave Theory in real time.This is an update of a previously uploaded Dollar index Chart. Analysis remains the same and a confirmation at its current location would trigger continuation of the upward move as analysed on the first chart I had posted. Theoretically, the pullback on Monday, 21st July 2025 could be our Wave 2 with Wave 1 being on Thursday, 17th July 2025.
US Dollar Index (DXY) – 4H Chart AnalysisUS Dollar Index (DXY) – 4H Chart Analysis
**Current Trend:** Bearish
Price trades below EMAs, Ichimoku Cloud, and within a bearish channel.
#**Bearish Scenario (Favorable)**
* **Conditions:**
* Price remains below EMA 7 & 21
* Stays under Ichimoku Cloud and 96.812 resistance (R1)
* Lower lows forming, bearish momentum increasing
* **Confirmation:**
Break below **96.37 (blue zone)**
* **Target:**
* TP1: 96.00
* TP2: 95.60 (next weak support)
**Bullish Scenario (Reversal)**
* **Conditions:**
* Price must break above **96.81 (EMA 7 + resistance)**
* Break above **R1 → 96.90**, and then above **R2 → 97.14–97.19**
* Bullish candles close above the Ichimoku cloud
* **Confirmation:**
Break and retest of **97.20**
* **Target:**
* TP1: 97.39
* TP2: 97.58 (key structure)
* TP3: 98.00 (major resistance)
**Bias:** Bearish unless DXY breaks above **97.20** with strong volume and bullish structure.
DXY Outlook: Can Fed Hold Spark a Move Toward 100?DXY Weekly Forecast – July Week 4
After reaching 96.50 early this month, DXY began showing bullish signs. Last week, price retested the extreme demand zone at 97.00 and closed with a bearish weekly candle that held some bullish pressure at the base.
This week, all eyes are on the Federal Reserve meeting. If the Fed holds rates steady, the dollar could strengthen further. A weekly close above 97.90 would confirm the breakout and open the door to a run toward 100.00 — a key psychological and technical level.
Bias: Bullish (if 97.90 breaks)
Key Zones:
• Demand: 97.00
• Breakout Level: 97.90
• Target: 100.00
This could be the beginning of a fresh bullish leg — especially if macro conditions align with technical structure.
—
Weekly forecast by Sphinx Trading
Let me know your bias in the comments.
#DXY #DollarIndex #ForexForecast #SphinxWeekly #SmartMoney #FOMC #USD #InterestRates
DXY 4Hour TF - July 27, 2025DXY 7/27/2025
DXY 4hour Bearish Idea
Monthly - Bearish
Weekly - Bearish
Dailly - Bearish
4hour - Bearish
**We analyze DXY as an indicator of USD strength on a week to week basis**
This week is looking like we can expect bearish momentum on USD but here are two scenarios breaking down the potential:
Bearish Continuation - USD pulled a strong bearish reversal all last week which pushed us below our major 98.000 support zone.
We are now testing that same 98.000 zone as resistance and are looking to see if it will hold. Ideally, we can confirm further bearish structure to gain confidence in a bearish USD for the week ahead.
Bullish Reversal- For us to consider DXY as bullish again we would need to see bullish structure above our 98.000 zone. This would include: A break back above 98.000 with an established HH and HL.
DXY 1D – Tipping Point: News or Price Action?Hey Guys,
The DXY index is currently moving within a downtrend. This trend is unlikely to reverse unless it breaks above the 98.950 level.
Sure, key fundamental data could shift the trend, but without those news catalysts, a reversal at this point doesn’t seem realistic.
Don’t forget—98.950 is a critical threshold for the DXY.
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