DX - USD Index Longterm Outlook Indicates Further DeclineThis long-term chart shows how the USD Index is trading within the boundaries of the Median Line set.
We see the lower extreme, solid support around the Center Line, and the upper extreme acting as resistance.
What’s next?
Well—if it’s not heading higher, it’s likely heading lower—and the rejection at the Upper Median Line (U-MLH) supports that view.
If we revisit the Center Line, my experience tells me it won’t hold—we’ll break through and head even lower.
Buckle up. It’s going to be a rough ride.
DXU2025 trade ideas
Is the US Dollar about to Rally?Hey traders just saw 3 bar trend line confirmed on US Dollar Index but is it actually entering a new uptrend?
Not sure no one knows of course fundamentally speaking I'm not sure. Seasonally it normally tops in the summer. But of course anything is possible in this new Tariff driven market we are in. But as you can see this is how you can get in when a trend changes early just find 3 bars and draw a straight line to connect them and you will be close to being on the right side of the market.
So if your bullish be careful and use risk management.
But if you bearish don't short until it goes back under the downtrend line imo.
Enjoy!
Clifford
Look To Sell USD and Buy EUR, GBP, NZD and AUD!This is the FOREX outlook for the week of May 5 - 9th.
In this video, we will analyze the following FX markets:
USD Index
EUR
GBP
AUD
NZD
CAD
CHF
JPY
USD Index has tapped the W -FVG. I expect it to sweep the last week's high before heading down. Short term strength for longer term weakness.
Look to buy xxxUSD pairs. Sell USDxxx pairs.
Wait for valid setups. FOMC is Wednesday! Don't just jump into trades without confirming the bias first!
Enjoy!
May profits be upon you.
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DXY Struggles at Mid-Cycle: Capital Flow Rotation Underway
The US Dollar Index (DXY) is sitting at a generational pivot zone around the 100 level, a midpoint in its 10-year price cycle. It has failed to reclaim this level decisively, and macro headwinds continue to build:
The re-escalation of tariff wars by the US administration, alienating global partners
Increasing capital outflows to the Yen, Gold, and emerging crypto ETFs
The risk of a flattening or inverted yield curve dragging confidence in USD-denominated debt
A break below 98.52 could accelerate the move toward 96.20, 94.76, and 92.44, historically associated with market stress and recessionary periods.
As the dollar's reputation as the world's safe haven erodes, Bitcoin—particularly in its regulated, ETF-wrapped form—is gaining favour as a neutral store of value.
DXY The Fake Dance- One of the most important barometers for global currencies and markets in the world.
- Most of the time DXY is a well used machine to supress markets (forex, stocks, cryptos, etc..)
- When they don't start the printing machine, DXY keeps is strength.
- When they start to print DXY starts to dip and markets boom up.
- it's really basic and based on "BRRR Machine".
- i had a hard time to decrypt this fake peace of resilience.
- actually there's none visible divergences on the 1M or 3M Timeframes.
- So i decided to push my analysis to 6M Timeframe and noticed few things :
- You can notice that from 2008 ( Post crises ), DXY was in a perma bullish trend.
- So now check MACD and will notice this fake move on January 2021 ( in graph the red ? )
- MACD was about to cross down, columns smaller and smaller, then a Pump from nowhere lol.
- i rarely saw that in my trading life on a 6M Timeframe.
- So to understand more this trend, i used ADX (Average Directional Index)
- ADX is used to determine when the price is trending strongly.
- In many cases, it is the ultimate trend indicator.
- So if you look well ADX columns, you will notice that a strong divergence is on the way.
- First check the Yellow Doted Line in July 2022 when DXY reached 115ish and look the size of the green columns.
- Now check today (red doted Line), and look again the ADX green columns is higher, but DXY diped to 105ish.
- So like always, i can be wrong, but i bet on a fast DXY dip soon or later.
- it's possible to fake pumps, but it's harder to fake traders.
Happy Tr4Ding !
US Dollar at Breaking Point: China Tariff Clash Risks Collapse Farmers, Boeing, and tech sectors brace for severe damage as USD threatens to break critical 10-year support amid escalating trade tensions.
Technical Breakdown: Crucial USD Zone Under Threat
The US Dollar Index (DXY) currently sits precariously within a critical 10-year support and resistance zone between 100 and 98. Historically, this key price area has repeatedly served as a midpoint equilibrium, dictating significant directional shifts. A decisive breach below this support could unleash substantial downward momentum, targeting deeper psychological and technical levels at 95 or potentially 92.
Examining a 10-year price cycle reveals a consistent pattern: whenever the USD has broken below this midpoint zone, it has lingered and struggled to regain upward traction. Currently, the short-term reprieve provided by the temporary 90-day tariff halt may offer brief support—but the underlying macroeconomic stress signals growing vulnerability.
Fundamental Factors: Tariff War's Long-Term Damage
While the US administration's aggressive tariff strategy against China was intended to protect American industries, its effects are increasingly backfiring—posing significant long-term risks to the US dollar and economy.
Agriculture:
US farmers are already suffering substantial losses. China, a critical export destination for American meat, grain, and soybeans, has drastically reduced purchases in retaliation. The direct result is declining farm revenues, increased inventory buildup, and weakening regional economies dependent on agricultural exports.
Aviation (Boeing):
One of America's largest manufacturing exporters, Boeing has become a recent casualty. Tariff escalations and strained diplomatic relations have severely affected aircraft sales to China—its biggest overseas market. With Boeing's market dominance already challenged by competitors like Airbus, prolonged tariffs could have dire financial implications, further pressuring USD sentiment.
Technology and Semiconductor Industries:
The US tech sector, including semiconductor giants such as Intel, Nvidia, Qualcomm, and Apple, heavily relies on Chinese manufacturing and consumption markets. Tariffs imposed on Chinese components and retaliatory measures have led to significant supply chain disruptions, increased production costs, and lower profit margins. Extended trade tensions risk permanently damaging these companies' competitiveness and earnings potential.
Retail and Consumer Goods:
American retailers, from Walmart to Amazon, are also exposed to China's tariff retaliation. Rising import costs translate directly into higher consumer prices, diminished purchasing power, and potential slowdowns in consumer spending—key pillars underpinning US economic growth and, by extension, dollar strength.
Why the Dollar Could Sink Further
As these vital sectors face prolonged pressure, broader economic fundamentals weaken. Reduced export revenues, rising domestic costs, and declining consumer confidence collectively undermine investor sentiment toward the US dollar. Moreover, sustained trade tensions might force the Federal Reserve into more accommodative monetary policies, potentially leading to rate cuts—a scenario traditionally bearish for the USD.
If the current trajectory persists, the US dollar could face intensified selling pressure, propelling it towards critical psychological and historical support levels at 95, with an even deeper potential retreat toward 92.
Bottom Line
The dollar now stands at a pivotal crossroads. With crucial sectors like agriculture, aviation, technology, and retail deeply vulnerable to prolonged US-China trade conflict, a fall below the critical 10-year support at 98 would signal a significant bearish shift. Investors and policymakers alike must brace for volatility as the implications of this trade war continue to unfold.
How low Can the Dollar Go? And What It Could Mean for EUR/USDThe US dollar index has handed back all of its Q4 gains with traders betting that Trump's trade war will do more damage than good to the US economy. I update my levels on the US dollar index and EUR/USD charts then wrap up market exposure to USD index futures.
Bears give the USD a break, EUR/USD pullback may not be overThe retracement higher for the US dollar is finally underway, which also shows further upside potential. And this is why I am wary of being long EUR/USD over the foreseeable future, even if I suspect it is poised to break to new highs in the coming weeks.
Matt Simpson, Market Analyst at City Index and Forex.com
The Dollar's Demise May Not Be Over Just YetThe US dollar index is on track for its worst week in nearly two and a half years. It is also nearly 6% off from the January high, which is similar in depth to the two previous selloffs seen in 2023 and 2024. Yet I do not think we've seen the low just yet, even if there is evidence of a potential bounce on the daily chart.
Matt Simpson, Market Analyst at City Index and Forex.com
3.3.25 pre-week analysisMy thoughts on the upcoming week:
Not going to be the cleanest trading conditions. Dx hit an important level so need some more candles. Ultimate looking for some type of bearish retrace. Will need to make a decision about direction once that happens, but if Dx goes bearish:
1 Oil and Gold longs look interesting
2 GU longs after hitting the sell side lows would be nice to see
3 Indexes should rally ES and Dow look like better buys.
U.S. Dollar Index (DXY) The U.S. Dollar Index (DXY) has exhibited a 1% increase over the past three trading sessions. However, the index remains structurally weak unless it successfully breaches the 108 resistance level. Conversely, the key support level is positioned at 105.615. Due to trump tariffs policy, Fed annouancement.
USD lower, yields whacked on renewed Fed-cut betsEven as recently as two weeks ago, the thought of fed cuts were in the distant past. Yet a slew of weak data from the US since Friday including two consumer sentiment reports and a surprise PMI miss has seen markets reconsider a 25bp Fed cut in June. Today I cover bond yields, the US dollar index and futures exposure to update my dollar outlook.
Matt Simpson, Market Analyst at City Index and Forex.com