Weekly FOREX Forecast: USD, EUR, GBP, AUD, NZD, CAD, CHF, JPYThis is the FOREX Currency futures outlook for the week of May 18 - 24th.
In this video, we will analyze the following FX Majors markets:
USD Index
EUR
GBP
AUD
NZD
CAD
CHF
JPY
USD Index has been bullish for 4 weeks. Will it continue? Expect a pullback before bullish continuation.
Selling the commodity currencies (AUD, CAD, NZD) may be the best course of action this week. Buying the EUR, GBP and CHF may also be worthwhile.
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DXY trade ideas
USD Bears Take Over After 102 ResistanceTiming moves can be difficult on both long and short-term basis. But when price goes oversold on the weekly chart, it can be really difficult to chase the move lower, such as we saw in DXY back in late-April.
The currency hit a major spot of confluent support on Easter Monday and at that point RSI on the weekly was in oversold territory for only the second time in the past seven years.
As I had highlighted in this post () it was the 102 level that I wanted to see DXY trade through to illustrate bullish control following that oversold reading.
It took a few weeks, but last Monday saw an open door for bulls to make the statement move - but they fell 2 pips shy of the big figure and since then, sellers have taken more and more control of the matter.
This is where the proverbial plot thickens as there's now no oversold reading on the weekly DXY chart, and sellers have an open door to push for a major low.
On that front, we will likely need to see a breach of the 140.00 level in USD/JPY to allow for a push to a fresh low, and given the momentum in both USD and USD/JPY from the past week, that's not something that I would want to discount.
But next week is the final week of May trade and it's a big week for both markets. USD/CAD remains of attraction for USD bears given the longer-term range that remains in play there. - js
Death of US Dollar – DXY Technical Analysis (SUPPLY & DEMAND)The U.S. Dollar Index (DXY) has broken its long-term parabolic uptrend and lost the key 100–104 support zone, which has now flipped into fresh supply after a clean retest—confirming a macro structural shift from bullish to bearish. Repeated rejections from the decades-old descending trendline and major supply around 111–114 mark the end of the dollar’s recent dominance. With no strong support until the 89.16 level—and deeper demand zones at 84 and even 76—DXY is likely entering a prolonged downtrend. This breakdown has global implications: easing dollar strength typically boosts risk assets, commodities, and emerging markets, while accelerating dedollarization narratives. For Bitcoin, this environment is historically bullish, potentially fueling the next crypto rally as capital rotates into scarce, decentralized assets amid weakening fiat confidence. Unless the dollar reclaims 104 on a monthly close, this marks the beginning of a macro bearish cycle for the USD.
USD Reversal From 2025 Downtrend- DXY Short-term LevelsThe US Dollar Index rallied more than 4% off confluent support with the recovery failing at the yearly downtrend this month. The decline is responding to initial support late in the week with the near-term recovery may be vulnerable as we head into the close of the month.
A look at DXY price actions shows the index rebounding off support today at 99.40/47- a region defined by the 61.8% retracement of the April rally and the May low-day close (LDC).
Initial resistance is eyed at the 38.2% retracement of the recent decline / 2024 low-close at 100.35 with key resistance around the 50% retracement at 100.65- note that the April trendline converges on this threshold over the next few days. Ultimately, a breach above the Friday close / 61.8% retracement at 100.97 is needed to suggest a more significant low was registered last month / validate a breakout of the yearly downtrend.
A break below the weekly lows would threaten resumption of the broader downtrend towards subsequent objectives seen at the 78.6% retracement at 98.79 and key support at 97.71-98.39- a region defined by the 2018 swing high, the 2025 swing low, and the 61.8% retracement of the 2018 advance. Look for a larger reaction there IF reached.
Bottom line: The U.S. Dollar has broken below a multi-week uptrend with the bulls now attempting to mark resumption of the yearly downtrend. From a trading standpoint, rallies would need to be limited to 100.65 IF the index is heading lower on this stretch with a close below 99.40 needed to fuel the next leg of the decline.
Keep in mind we get the release of key U.S. inflation data next week with core personal consumption expenditures (PCE) on tap into the close of the month. Stay nimble into the release and watch the weekly closes here for guidance.
-MB
DXY Bullish move| 🔹 Pair / TF | DXY, 1 h → Lower Timeframes |
| 🔹 Bias | Bullish (buying potential support) |
📊 Key Levels
Level: ~99.117 (orange shaded zone)
Role: Recent Swing Low / Potential Support Zone
Level: ~98.744
Role: Lower boundary of the potential support zone
Level: ~99.727
Role: Potential Resistance (previous swing high)
Level: ~100.116
Role: Higher Potential Resistance
🚨 Trigger
Price has recently touched the ~99.117 - ~98.744 orange shaded zone, which appears to be acting as a potential support area.
There are signs of potential rejection from this zone, indicated by the recent upward price action.
Look for bullish confirmation signals on lower timeframes within this zone.
✅ Confirmation
Observe lower timeframes (e.g., 15m, 5m) for bullish reversal patterns such as double bottoms, bullish engulfing candles, or pin bars forming within the support zone.
The volume indicator at the bottom shows increasing buying volume within the support zone, suggesting potential accumulation.
Look for the Stochastic or RSI on lower timeframes to show oversold conditions followed by a bullish crossover or break above a downward trendline.
No significant bearish momentum or strong selling volume evident as price tests the support zone.
🎯 Entry & Stops
| 🔶 Entry Zone | ~99.117 – ~98.800 (within the potential support zone) |
| 🔴 Stop-Loss | Below the lower boundary of the support zone, potentially around ~98.600 - ~98.500 to allow for some buffer |
Place a Buy Limit or Buy Stop order within the entry zone, depending on your preferred entry style and confirmation.
Risk: Determine your position size based on your risk tolerance and the calculated stop-loss in pips.
🎯 Profit Targets
| Target | Level | Pips (approximate) | RRR |
| :----- | :--------- | :----------------- | :--------- |
| T1 | ~99.727 | ~60-70 | 1 : 1 or better |
| T2 | ~100.116 | ~100-120 | 1 : 1.5 or better |
Scale out:
Consider taking partial profits at T1.
Let the remaining position run towards T2, potentially adjusting your stop-loss to breakeven or in profit.
⚙️ Trade Management
Once the trade is in profit (e.g., reaching a certain pip gain or T1), consider moving your stop-loss to breakeven to protect your capital.
Monitor price action around T1. If there are strong signs of selling pressure, consider closing the remaining position.
Pay attention to any potential resistance levels or significant selling volume as price approaches your target levels.
🔑 Rationale
Price is testing a recent swing low area, which has the potential to act as support.
Increasing buying volume within the support zone suggests that buyers are stepping in.
Bullish reversal patterns on lower timeframes would confirm the rejection of the support zone.
Aiming for the previous swing high (~99.727) and the higher potential resistance (~100.116) provides logical profit targets.
⚡ Highlight:
This is a bank-order-flow style fade, looking to buy at a potential support zone after a recent pullback, anticipating a reversal and continuation of potential upward momentum. The increasing buying volume within the support zone is a key observation.
U.S. Dollar Index Set for Bearish Continuation The U.S. Dollar Index (DXY) has completed a five-wave impulse decline (labeled (1) through (5)) from the top of the descending channel. This downward move suggests a completed impulsive bearish leg. Following that, we’ve seen a complex corrective structure – a WXY double zigzag correction – now complete.
Price action shows a rejection from the upper trendline resistance near wave (2), confirming the bearish structure remains intact. The bounce into the corrective high (wave (2)) failed to break above key resistance, and we are now potentially entering a new impulsive move down labeled as wave (3) of the next larger degree impulse.
Primary Impulse Decline: Wave (1) to (5): Classic 5-wave move down ending late April.
Corrective Phase: Complex WXY correction (with subwaves A-B-C in both W and Y).
Current Wave in Play: Wave (3) of a larger impulsive sequence is initiating.
T1: 99.172
T2: 98.013
SL: 101.259
If price closes above 101.265 the current bearish impulse scenario would be invalidated.
DOLLARDXY (US Dollar Index) and Bond Yield Relationship – May 2025
Current Market Situation
US Treasury Yields:
The 10-year Treasury yield is at 4.54% (May 21, 2025), and the 30-year yield is testing the 5% level amid a global bond sell-off.
DXY (US Dollar Index):
The DXY and the 10-year yield are moving in sync again after a period of divergence earlier in 2025.
Relationship Dynamics
Positive Correlation:
Historically, the DXY and US bond yields (especially the 10-year yield) tend to move together. When yields rise, the dollar often strengthens, as higher yields attract foreign capital seeking better returns.
In recent weeks, this positive correlation has resumed after a brief disconnect in April, when yields surged but the dollar weakened due to shifting investor sentiment and US tariff policy.
Periods of Divergence:
In early April 2025, there was a notable divergence: yields climbed while the dollar fell, reflecting a rare episode where investors were wary of US assets despite higher returns, possibly due to concerns about US fiscal health and global trade tensions.
During that period, both US bonds and the dollar declined together, signaling a potential shift away from US assets and raising questions about the dollar’s structural appeal as a reserve currency.
Recent Realignment:
After the Federal Reserve’s recent meeting and a major tariff agreement with China, the DXY and yields began rising together again, indicating renewed confidence in US assets and a return to more typical market behavior.
Key Factors Influencing the Relationship
Fed Policy:
Expectations for future rate cuts or hikes directly influence both yields and the dollar. Higher expected rates generally support both.
Global Risk Sentiment:
In risk-off scenarios, the dollar can strengthen even if yields fall, due to safe-haven demand.
Trade and Fiscal Policy:
Tariffs and concerns about US debt sustainability can disrupt the usual correlation, as seen in early 2025.
Summary Table
Factor Impact on DXY Impact on Yields Typical Correlation
Rising US Yields Strengthens DXY Yields rise Positive
Fed Rate Hike Expectations Strengthens DXY Yields rise Positive
US Fiscal Concerns Can weaken DXY Yields may rise Can diverge
Global Risk Aversion Strengthens DXY Yields may fall Can diverge
Trade Tensions/Tariffs Mixed Mixed May disrupt correlation
Conclusion
As of May 2025, the DXY and US bond yields have resumed a positive correlation, both rising in response to Fed policy signals and improved risk sentiment following a major tariff agreement. However, earlier in the year, this relationship broke down due to concerns about US fiscal stability and shifting global investment flows. The interplay between DXY and yields remains sensitive to Fed policy, fiscal outlook, and geopolitical developments.
#DOLLAR #DXY
DOLLARThe relationship between the U.S. dollar and U.S. Treasury bond yields in May 2025 reflects a complex and evolving dynamic influenced by fiscal concerns, trade policies, and investor sentiment:
Recent Trends:
U.S. Treasury yields have risen, with the 30-year yield briefly touching 5%, and the 10-year yield climbing above 4.5%, driven by concerns over rising U.S. debt and fiscal deficits following Moody’s downgrade of the U.S. sovereign credit rating. Despite this rise in yields, the U.S. Dollar Index has weakened, dropping about 4% year-over-year, reflecting reduced confidence in the dollar as the world’s reserve currency.
Typical Relationship:
Normally, higher Treasury yields attract foreign capital seeking better returns, which supports a stronger dollar. The dollar and bond yields often move in tandem, showing a positive correlation (around 0.5 over recent months). This was evident recently as the dollar strengthened alongside rising yields following a preliminary U.S.-China trade truce.
Current Anomalies:
However, in early 2025, this relationship weakened significantly. The dollar declined even as Treasury yields rose, signaling a loss of confidence in U.S. assets amid escalating trade tensions and concerns about the sustainability of U.S. fiscal policy. This decoupling suggests investors are reconsidering the dollar’s role and are diversifying away from U.S. assets.
Market Sentiment and Risks:
The downgrade and rising deficits have increased fears about U.S. fiscal health, prompting some investors to sell U.S. assets, which pressures the dollar despite higher yields. Meanwhile, tariff policies and geopolitical risks contribute to volatility in both yields and the dollar.
Outlook:
The dollar and Treasury yields have recently realigned, moving more in sync again as trade optimism returned and the Fed maintained a steady policy stance. However, ongoing fiscal challenges and geopolitical uncertainties mean this relationship remains fragile.
Summary
Aspect Current Observation (May 2025)
Treasury Yields Rising (10-year ~4.5%, 30-year ~5%)
U.S. Dollar Index Weakened (~4% decline YTD)
Typical Correlation Positive (~0.5 correlation between dollar and yields)
Recent Anomaly Dollar fell while yields rose (early 2025)
Drivers of Anomaly Fiscal concerns, Moody’s downgrade, trade tensions
Market Sentiment Reduced confidence in U.S. assets and dollar
Outlook Re-alignment underway but fragile due to fiscal risks
In essence:
While U.S. Treasury yields and the dollar usually move together—higher yields supporting a stronger dollar—recent fiscal concerns and geopolitical tensions have caused periods of divergence. Rising yields amid a weakening dollar reflect investor worries about U.S. debt sustainability and a potential shift away from the dollar’s reserve currency status. However, improving trade relations and Fed communication have recently brought the two back into closer alignment, though the relationship remains sensitive to evolving economic and political development
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView.
#dollar #dxy #gold
Bullish bounce?US Dollar Index (DXY) is reacting off the pivot and could bounce to the 1st resistance.
Pivot: 100.21
1st Support: 99.45
1st Resistance: 101.88
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.
Chart spoke. We listened. See how price respected every level!"Great when BOS + supply/demand lines hit perfectly.
Most traders chased the bounce.
We waited in the shadows — right at the selling zone.
Wave 4? Textbook correction.
Wave 5? That’s where the money’s made.
Elliott Wave isn’t just theory — it’s a weapon.
Break of structure? Marked.
Zone tested? Clean.
Rejection? Savage.
This is how professionals trade — not with hope, but with precision.
DXY: playing checkers while we play chess.”**
The US Dollar – Under Selling Pressure Today💵 US Dollar Index (DXY) – Still Under Selling Pressure
📉 Current Zone: 100.29
The DXY continues its bearish momentum after failing to reclaim the technical resistance zone between 101.27 and 102.20.
🔍 Key Zone Analysis:
🔴 Technical Resistance Zone:
101.267 – 102.206 → Heavily rejected, confirming strong selling pressure.
🟢 Fundamental Support Zone:
99.447 – 99.939 → Key psychological level closely monitored by institutional players.
📊 Current Scenario:
🔻 As long as price stays below 101.26, the bearish bias remains intact.
📉 Downside target: retest of the 99.44 – 99.90 zone.
❌ Invalidation: clean break and close above 102.20.
⚠️ Events to Watch This Week:
Federal Reserve speeches
Key U.S. macro data (jobs, inflation)
The DXY remains vulnerable to any signs of rate easing or economic slowdown.
📘 Reminder: The information provided is for educational purposes only.
It does not constitute financial advice or an investment recommendation.
💬 Boost if you’re watching the DXY too! What’s your view on this support zone? 👇
Mindset Monday - Dealing With Big Losses “You can’t control if you lose — but you can control how much you lose.”
In this first episode of Mindset Mondays, we dive into the emotional and practical side of trading losses. I explore how risk management and mindset shape your long-term success, and why learning to accept and limit losses is one of the most powerful skills a trader can develop.
Whether you're dealing with a tough loss or want to build mental resilience before the next one hits, this video is for you.
🎥 Watch now and take control of what is in your control.
Bullish bounce?US Dollar Index (DXY) is falling towards the pivot and could bouce to the 1st resistance.
Pivot: 100.17
1st Support: 97.91
1st Resistance: 101.93
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.