Get started
UUU

US Dollar Index

No trades
See on Supercharts
Overview News
Ideas
Discussions Seasonals

USDX trade ideas

Market News Report - 03 November 2024While it was a mild past week, the USD was pretty strong again. Other bullish currencies include the euro and the British pound. Speaking of the latter, the Bank of England will announce its interest rate soon. Then, we had the most anticipated new Federal Funds on Thursday and the US elections. All of this and more will be covered in our market report of the major forex pairs. Market Overview Below is a brief technical and fundamental analysis breakdown for all major currencies. US dollar (USD) Short-term outlook: weak bearish. Despite a recent 50 basis points (bps) rate cut, the Fed may not need to cut rates as aggressively going forward. This is partly due to recent positive job numbers and earnings data that exceeded expectations. While the NFP data last Friday was negative, the drop was due to the impact of US hurricanes and labour disputes with Boeing. The US elections on Tuesday may provide a notable boost for USD if Trump wins. However, we also have the new Fed interest rate two days later, where a cut is anticipated. So, the bias remains weak bearish in the near term. The Dixie continues to head north after weeks of ranging around the key support area at 100.157. We have spoken several times about a potential technically-driven retracement (despite the bearish fundamentals). Meanwhile, the key resistance is far away at 107.348, which will remain untouched for some time. Long-term outlook: weak bearish. While there is no extreme dovish pricing anymore (thanks to some economic improvements), the Fed is still expected to cut the interest. Labour data will be another key driver in the long term for USD. However, the upcoming US elections could be a huge redeeming factor for the greenback if Trump wins (who is highly favoured against Harris). Euro (EUR) Short-term outlook: bearish. The short-term interest rate (STIR) markets were predictably accurate as the European Central Bank (ECB) cut the interest rate last month. However, they remain data-dependent on what to do in the future (although they are quite concerned about slow growth). Short-term interest rate markets have indicated an 84% chance of a rate cut in December. Also, we have seen weaker economic data across various European nations (although the Eurozone Gross Domestic/GDP growth was above expectations). The euro has finally made its bearish intention known on the charts, breaking the key support at 1.07774 (but only just). We need to see how this level reacts over the coming weeks- so it's not out of the question. Meanwhile, the key resistance remains far higher at 1.12757. Long-term outlook: bearish. The latest rate cut and the avoidance of indicating a clear future move for the December meeting are among the key down-trending factors. However, any improvements in economic data (according to the ECB) would be a turnaround. Higher German inflation and stronger European growth in Q3 have saved the euro from a downward spiral. British pound (GBP) Short-term outlook: bearish. The Bank of England (BoE) kept the interest rate steady in its recent meeting. Still, the language indicates they need to be “restrictive for sufficiently long” and the "gradual need" for decreasing the rate. STIR pricing indicates an 86% chance of a cut on Thursday As with the ECB, the central bank's current key theme is fighting persistent inflation in the United Kingdom. So, it makes more sense to be dovish than hawkish. Not long ago, Governor Bailey hinted that "aggressive rate cuts" were possible if inflation went lower. We mentioned that the current retracement may be the start of a more serious bear move. So far, that's what the pound is experiencing. The nearest key support is at 1.26156, while the resistance target is 1.34343. Long-term outlook: weak bearish. Sequential rate cuts by the BoE may soon be a reality due to the points discussed earlier. However, a new development is the UK budget, which has been seen as a reason for the central to proceed slowly in this regard. As usual, data remains essential going forward with GBP. Japanese yen (JPY) Short-term outlook: bullish. Unlike in July this year, the Bank of Japan (BoJ) kept the interest rate the same last week. So, our outlook remains largely unchanged. However, a rise in USD/JPY could raise the possibility of the BoJ's intervention. ​​Governor Ueda of the BoJ noted not long ago that despite domestic economic recovery, recent exchange rate movements have reduced the upside risk of inflation (which has been on an upward trajectory). As recently as 31 October 2024, Ueda also stated that hikes would continue if the central bank's projections were realised. The 139.579 support area is proving quite strong, boosting the yen since mid-September. Still, the major resistance (at 161.950) is too far for traders to worry about. Long-term outlook: weak bullish. Lower US Treasury yields are one potential bullish catalyst for the yen (the opposite is true). Inflation pressures and wage growth would also provide upward momentum. We should also consider that the dovish tendencies of other major central banks and worsening US macro conditions are JPY-positive Still, as a slight downer, near-term inflation risks subsiding (according to the BoJ) reduce the urgency for a rate hiking cycle. Australian dollar (AUD) Short-term outlook: weak bullish. The Reserve Bank of Australia (RBA) kept the interest rate unchanged during the Sept. 25 meeting. They further stated that they "did not explicitly consider rate hikes" for the future, which is a marginally dovish statement. The Aussie remains sensitive to China’s recent economic woes, with some promising developments at times. Finally, recent positive unemployment and labour data gives a base case for a hold in the RBA interest rate on Monday this week (priced at 97% probability according to STIR markets). After failing to break the 0.69426 resistance level several times, the Aussie has retraced noticeably from this area. While this market looked bullish, this pullback does surprisingly indicate otherwise. Still, we are quite far from the major support level at 0.63484, but consider the interesting dynamic with the opposite fundamentals of AUD and USD. Long-term outlook: weak bullish. While the RBA hasn’t ruled anything out, the central bank isn’t explicitly suggesting rate hikes in the future. It’s crucial to be data-dependent with the Aussie, especially with core inflation as the RBA's key focus area. However, the Australian dollar is pro-cyclical, meaning it is exposed to the economies and geopolitics of other countries, especially China. New Zealand dollar (NZD) Short-term outlook: bearish. Unsurprisingly, the Reserve Bank of New Zealand (RBNZD) cut its interest rate by 50 bps recently and sees further easing ahead. This affirms another cut next month of potentially the same magnitude. Furthermore, the central bank is confident that inflation will remain in the target zone, adding more impetus to the bearish bias. Due to the rate cut, the Kiwi has been on a downward spiral, proving the strength of the major resistance level at 0.63790. Conversely, the major support is at 0.58498. Long-term outlook: bearish. The central bank's latest dovish stance (where it cut the interest rate) firmly puts the Kiwi in a 'bearish bracket.' They also revised the OCR rates lower and signalled steady winnings in the inflation battle. Canadian dollar (CAD) Short-term outlook: bearish. The Bank of Canada (BoC) unsurprisingly delivered a 50 bps cut on Wednesday. Further cuts remain on the cards, with the long-term target being 3%. The BoC is signalling victory over inflation due to the cuts, with Governor Macklem suggesting that they would probably cut further until they achieve the optimal low inflation. In their words, 'stick the landing.' Overall, the bias remains bearish - expect strong rallies in CAD to find sellers. While the short-term fundamental biases of USD and CAD are bearish, CAD is the weakest on the charts. USD/CAD has finally touched the key resistance at 1.39468. This week will determine whether this area will be breached or not. Meanwhile, the key support lies far down at 1.33586. Long-term outlook: weak bearish. Expectations of a rate cut remain the focal point. The Bank of Canada has recognised the lower economic growth, and Macklem wishes to see this increase. Furthermore, any big misses in upcoming GBP, inflation, and labour data would send CAD lower. Still, encouraging oil prices and general economic data improvement would save the Canadian dollar's blushes. Swiss franc (CHF) Short-term outlook: bearish. STIR markets were, as usual, correct in their 43% chance of a 25 bps rate cut (from 1.25% to 1%) recently. In the Sept. 26 meeting, the Swiss National (SNB) indicated its preparedness to intervene in the FX market and further rate cuts in the coming quarters. The central bank's new Chair (Schlegel) said they "cannot rule out negative rates." Finally, the September CPI came in weak at 0.8%, against the expected year-on-year 1.1%. Still, the Swiss franc can strengthen during geopolitical tensions like a worsening Middle East crisis. USD/CHF has just broken out of the range (but only just) discussed in our last few reports. While remaining largely bearish, this market could return closer to the major support level at 0.83326 or climb its way to the higher major resistance level at 0.92244. Long-term outlook: weak bearish. The bearish sentiment remains after the last SNB meeting, while inflation is being tamed with lower revisions. We should also remember that the SNB's intervention prevents the appreciation of the Swiss franc. The new chairman is more keen to cut rates than his predecessor, Jordan. The SNB aims for neutral rates between 0 and 0.50% (currently at 1%). However, STIR markets only see a 20% chance of a 50 bps cut next month. Conclusion In summary: The USD will certainly be the talk of the town this week due to the upcoming elections and Fed rates. Other noteworthy economic releases include the new interest rates for the British pound and the Australian dollar. Our short and long-term fundamental outlooks remain unchanged from the last few weeks. As always, hope for the best and prepare for the worst. This report should help you determine your bias toward each currency in the short and long term.
TVC:DXY
by CityTradersImperium_CTI
Something to think aboutHey! Here I have a chart where I have marked all the last Nonfarm Payrolls reports in 2024 and how dollar usually reacts to them. As I can see the dollar is falling and will be heading back to South WHY? ..because Oct 04, 2024 was reported: 254k and Nov 01, 2024 was 12k The difference between these two reports are way too big and these elections or Trumps win can`t overlook of this! So.. all the other currencies what have been falling due to dollars rise are now or will be reversing in the near future.. One of the best pair what I have been monitoring in the last few months is AUDUSD .. It have been falling heavily and have positioned itself for a turnaround. Second pair what interests me is USDCAD because it usually moves with dollar in the same direction and is also very well positioned: So is it only me or maybe there is something wrong with my eyes, but something is cooking ;) This is not a financial advice and do Your own research and other great stuff! Trade safe friends! Devi
TVC:DXYShort
by devigriffel
Weekly Recap & Market Forecast $SPX (Nov 3rd—> Nov 8th)Looking Ahead: Next week promises to be pivotal with several major events on the docket: - **U.S. Presidential Election:** A crucial event that could reshape fiscal and economic policies. - **Fed Policy Decision & Powell Press Conference:** The market will closely watch for signals about future rate paths. - **U.S. Jobless Claims:** Key data to gauge the health of the labor market. As we move forward, these developments will be crucial in shaping market sentiment and guiding investment decisions. **Timing is key in trading. Check our www.notion.so for time stamps on these important events and stay ready for what’s ahead.** Here’s to another week of informed investing and strategic decision-making! 🌟 Market Forecast (Updated 11/03/2024) **SPX** - Most of the Mag 7 stocks reported really good numbers but issued weak guidance. With FOMC and Election decision this week, We should see a lot of volatility. Next resistance: 5,824 and 5,893 Next support: 5,705, followed by 5,600 Weekly Sentiment: Mixed
TVC:DXY
by WallSt007
a possibility that the dollar might go up to the 105 price levela possibility that the dollar might go up to the 105 price level because there might be a significant pullback. especially since the US elections has shown a very volatile effect on the USD and several other currencies in the past week. this might be a good opportunity to take out your spoil from the market or lose too. anyways, be careful. i intend to take trades only if there's a very straightforward setup. that said, if there is no liquidity raid, i won't be taking any trade. i'm not eager to lose or make money.
TVC:DXY
by isaacnsisong
The Weekend: Prepping to Trade & Travel w/AIRAIn preparation for a trip to show my daughter more of Thailand, I've switched to a fully mobile setup. I’m running everything with just two laptops and a monitor for each, getting my mind ready for this new workflow. I’m excited for this change because our usual work routine felt like it was limiting her experiences at such a crucial time in her life. This upcoming week is a big one, but nothing is more important than her growth and development. So, I hope you enjoy this test video. Rest assured, What's Flowing videos will keep flowing, and my algorithms will stay busy spread trading across various markets.
TVC:DXYEducation
by moneymagnateash
Near-term Bullish DXY Bias Monthly chart for DXY hints a possible distribution zone formation. As there is a bullish candlestick pattern formed at last month, bullish bias seems to be the higher possible trend for now. Weekly Bullish trend channel formation suggest higher upside is likely, however, last bar doji candlestick pattern suggest indecision. Near-term support and resistance at 100.25 and 106.50. Last Friday bullish bar closes back near Monday's opening reinforced near term bullish bias. Looking forward, next week 5 Nov being US presidential elections day will add volatility to the market. So, price may likely to go the next higher order block area.
INDEX:DXYLong
by savvyacademy