USDOLLAR trade ideas
Inverse correlation>USDollar vs Markets>USD go UP rest goes DOWNThis is an oldie well semi recent oldie but goodie if that makes sense. As we began to see more and more liquidity on ramps (off ramps a whole other discussion) ie as money was able to flow quickly and more efficiently into CRYPTO markets we began to see the same correlation other die-hards had been seeing in the traditional markets. IE DOLLAR GOES UP MARKETS GO DOWN AND VICE VERSA... this was more a general/bigger Macro trend then a hard and fast rule you always trad off of, a way to confirm your general overall trend/read of the markets. (IE BEAR/BULL/SIDEWAYS and the different ways you trade in each market condition) I think this dives deeper into many other practical and not so practical theories. Like a underground root system hunting for water... if you dont believe there is some type of correlation real cause and effect of how much or how little money is actively in our system (ie how much is liquid and moving freely is how i look at it vs the idea of do we lock this up in something else for a bit or keep the liquid liquid..?) if money is scarce, well you do the math... and if money is easy to get (easier... never easy) Poeple r looking to make moves ie pump the markets. or HODL in fear is what this always comes down to. take the noise out and remember stuff happens for a reason... always cause and effect. even if not obvious or in plain site these underground rivers decide where the roots of liquidity end up physically sitting and where they drink from
Dollar to decline Dollar decline for next two months The decline of the US dollar, also known as "dollar depreciation," refers to the decrease in the value of the United States dollar relative to other currencies. Several factors can contribute to such a decline:
1. Inflation: When the US experiences higher inflation rates compared to its trading partners, the purchasing power of the dollar decreases, causing a decline in its value.
2. Monetary Policy: Changes in the Federal Reserve's monetary policy, such as lowering interest rates or increasing the money supply, can influence the dollar's value.
3. Economic Conditions: Weak economic performance, high levels of debt, or political instability can erode investor confidence in the dollar and lead to depreciation.
4. Trade Balance: A persistent trade deficit (importing more than exporting) can put downward pressure on the dollar, as it requires more foreign currency to pay for imports.
5. Geopolitical Events: Events like trade disputes, international conflicts, or political instability can affect the dollar's exchange rate.
6. Market Sentiment: Investor sentiment and market speculation can also influence currency markets, causing fluctuations in the dollar's value.
A declining dollar can have various economic implications, including potentially making US exports more competitive, but also increasing the cost of imported goods and contributing to higher inflation. It's important to note that currency markets are complex, and multiple factors can interact to affect the dollar's value.
Oct 16th, 2023- Oct 20th, 2023: USD
Last week failed at the low, then took short term buyside. I am willing to short from above one of the daily short-term highs, but I am finding longs more attractive for now.
I'd like to see a play on internal range liquidity where the two BISI(D) are stacked with the BPR(M) low before getting long this week.
Going to be looking for 1-2 opportunities/day Mon-Fri. If my model is clear, i will execute.
I want to see where SQ2/SQ3 engage with a 15m imbalance and reacts with a 2m block(RB/OB/BB).
Dow Jones 4hr TF
The Dow Jones has recently breached a bearish flag pattern, leading me to anticipate a shift towards a bearish trend following nine consecutive weeks of bullish performance. There are several factors aligning to suggest that the Dow Jones may embark on a downward trajectory. Meanwhile, the outlook for gold appears favorable for long positions, signaling a potential shift towards a bullish trend.
USDOLLAR - Double Top Within Up ChannelPrice is reaching the top of an up channel
I expect this to act as a rejection point for price as my current analysis. I have made other analyses in the past that differ from this but this is my latest thoughts.
Staying within the channel is the most likely scenario.
DOLLAR (DXY) ____ ANOTHER BULLISH RALLY Hello Guys,
This week might end the dollar bullishness as I speculate that Friday 'could' be the last bull run before the bearish move starts...
If you look at the daily chart of the dollar index, you would notice how price was manipulated to get people to sell the dollar only for it to reverse and rally. This rally, however, should continue.
It would be nice to see price retrace into the order block and see if price will change from bearish to bullish before continuing the rally. However, due to the manipulation that happened yesterday, there is a chance that price would not retrace to the order block before continuing to rally.
Since the dollar is bullish, it simply means that pairs such as AUDUSD, GBPUSD, and NZDUSD would print a bearish candle by the end of Friday while USDCAD & USDCHF would print bullish candles.
Follow for more updates like this.
Cheers,
Jabari
DXY Weekly ChartAfter the exaggerated drop in the DXY last week following a marginal miss on US CPI, the USD has regained some of its poise. The DXY has returned to 101, a level which provided solid support through most of H1 23. A rebound in US yields has likely played its part in the bounce-back, as equity markets remain elevated suggesting little or no ‘safe haven’ element to the USD recovery. Price has bounced off the 200 EMA(Green) data dependent this week it could be the pullback needed to enter EUR/USD longs from the 1.11 level.
DXY Daily Chart
We will be monitoring how price reacts at the 20 EMA(Blue) to see if we form a lower high.
USDOLLAR ShortWe will be looking for pullbacks now as the USD is looking oversold on both the Stochastic and RSI. We continue to believe that the USD is in the early stages of a structural decline, and that its move lower may not be linear. The most recent break in the USD’s recent trading range, to
the downside, gives us increased confidence in this view.
Dow Jones 4hr TF I anticipate an impending retracement for the Dow Jones index, as it has recently reached its target of 12,756. We should begin witnessing a decline from this point onwards.
The Dow Jones index has recently established a new lower low, and I am awaiting a price break below 12,745, which would further confirm the bearish sentiment.
US DOLLAR INDEX ____ INCOMING BULLISH RALLYHello Guys,
As I have stated most times that at some point, the dollar will rally and reach higher prices.
I suspect we have gotten to that period. I will insert my previous analysis for this.
With this view of the dollar rally, I would be looking out for USD pairs that have a good structure in alignment with the dollar rally.
Pairs like: USDCHF, USDSGD & XAGUSD have very interesting price structures. I advise you to monitor them.
Follow me for more updates.
US DOLLAR INDEX (Previous analysis)
Cheers,
Jabari
DXY, H4 | Bearish breakout?We're looking at DXY today and we can see that price is forming a sort of elliott wave structure - with wave 4 potentially recently finishing.
A break of 12856 which is a major overlap support could trigger the bearish acceleration down towards the 12801 level.
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