DXY Expected to Decline TomorrowDXY is expected to decline tomorrow, with potential for a maximum rise to the 101 resistance area accompanied by upper shadow formation.
A rising wedge pattern has formed, with stochastic in the overbought region, and there's a possibility of rejection at the dynamic resistance level.
DXY trade ideas
Do Not Be Fooled TVC:DXY is not truly weak. Over the past 2 months the only thing mainstream Fin Media has been talking about is how Dollar value is plummeting and while I do not debate the merits o that I do take contention with the idea that this means the DXY Will KEEP going down significantly from here. From a pure TA perspective DXY is simply in a consolidation phase with a high level volatility which did not begin with the recent drop in March. I began watching DXy like a HAWK in November 2024 and for anyone who has not, the extreme volatility began then with DXY going on a rally from Nov 24 to feb 25. The move from Mach until now has been simply another leg of vol extension. This is important to realize because the volatility now points to higher levels of it eventually returning and when that happens I predict it will take the form of an explosive impulse to the upside based on the long term inverse head and shoulders pattern coupled with the near textbook bull flag pattern
DXY:Sharing of the Trading Strategy for Next Week This week’s trading wrapped up successfully. Our exclusive VIP trading signals achieved a 90% accuracy rate!
Recently, the economic data of the United States has shown mixed performance. The non-farm payrolls added in April were higher than expected, but the data for March was revised downward, and the number of initial jobless claims also exceeded expectations. Overall, the U.S. Dollar Index still has a trend of fluctuating. Pay attention to the resistance level of 100.3742 above and the support level of 99.2702 below. In terms of trading operations, it is mainly advisable to take short positions on rebounds.
Trading Strategy:
sell@100.3000-100.0000
TP:59.5000-59.0000
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DOLLARDXY and Bond Yield Correlation: Key Dynamics in 2025
Core Relationship
The US Dollar Index (DXY) and US 10-Year Treasury yields exhibit a positive correlation, driven by shared sensitivity to Federal Reserve policy, inflation expectations, and global risk sentiment.
Fed Rate Hikes Strengthens USD (DXY ↑) and pushes yields higher
Strong US Growth Bolsters USD and raises yields via inflation risks
Risk-On Sentiment Weakens USD and lowers yields as capital flows to riskier assets
Inflation Fears Raises yields but may not always lift USD if growth concerns dominate
Current Correlation Metrics (2025)
DXY and 10-Year Yield Correlation: Historically positive, with recent coefficients ranging from +0.50 to +0.93 depending on market conditions.
USD/JPY and Yields: Extreme correlation of +0.93 in 2025, reflecting synchronized moves between the dollar and yields.
Key Drivers in 2025
Monetary Policy:
The Fed’s restrictive stance (4.50% rate) supports both USD and yields, but delayed cuts and tariff-induced inflation risks create volatility.
ECB and BoJ dovishness amplifies USD strength, reinforcing the correlation.
Economic Data:
Robust US GDP growth (0.4% Q1 2025) and sticky inflation (2.1% in Germany) keep yields elevated, supporting DXY.
Weakness in global markets (e.g., China, EU) drives safe-haven flows into USD and Treasuries, complicating the correlation.
Fiscal and Geopolitical Risks:
US fiscal deficit concerns and trade tensions (e.g., U.S.-China tariffs) threaten to decouple DXY from yields. For example, rising yields due to debt supply fears may coincide with USD weakness if investors flee US assets.
Bond market turbulence (10-Year yields at 4.47% in April 2025) highlights sensitivity to foreign demand and leverage unwinds.
Exceptions and Divergences
Risk-Off Scenarios: In crises, investors may buy both Treasuries (lowering yields) and USD, creating a temporary negative correlation.
De-Dollarization Fears: Structural shifts, such as reduced foreign appetite for US debt, could weaken the link between DXY and yields despite high rates.
2025 Outlook
Yield Range: Expected to stabilize between 4%–5%, supporting a firm USD if Fed policy remains hawkish.
DXY Trajectory: Faces headwinds from fiscal risks and tariffs but could rebound if global growth slows and US data stays resilient.
Summary Table
Correlation Positive (DXY ↑ as yields ↑), but context-dependent
Fed Policy Primary driver; higher rates lift both DXY and yields
Inflation Supports yields, but may weaken USD if growth falters
Global Risk Risk-off flows can strengthen USD while lowering yields
2025 Risks Fiscal deficits, tariffs, and de-dollarization may disrupt correlation
In conclusion, while DXY and bond yields generally move in tandem, 2025’s unique mix of monetary policy, fiscal strains, and geopolitical shifts introduces volatility. Traders should monitor Fed rhetoric, inflation data, and global risk appetite for directional cues.
DXY Bearish Forecast for Quarter 2, 20251. Technical analysis
The idea is based in ICT's PO3; AMD pattern.
We have a rally above the open price of May 2025, to take out BSL above the highs.
It also aligns with Daily tf premium arrays to short from.
The lowest hanging fruit being the relative equal lows at equilibrium of the dealing range.
2. Fundamental analysis
Investor's confidence in the Dollar is low due to POTUS' tariffs.
ICT: Inner Circle Trader
PO3: Power of 3
AMD: Accumulation, Manipulation & Distribution
BSL: Buy side liquidity
tf: Timeframe
Bearish forecast for DXYWith regards my previous forecast, we have a strong reaction from Weekly and daily premium arrays.
On the weekly TF, we have IOFED of the SIBI and BSL above previous 2 weeks' highs was taken.
Tf: time frame
IOFED: Institutional Order Flow Express Entry Drill
SIBI: Sellside Imbalance, Buyside Inefficiency.
BSL: Buy side liquidity
USD Is Bullish Short Term. Short The Majors! This is the FOREX outlook for the week of April 28 - May 2nd.
In this video, we will analyze the following FX markets:
USD Index
EUR
GBP
AUD
NZD
CAD, USDCAD
CHF, USDCHF
JPY, USDJPY
The USD Index is heading up towards a bearish FVG. The EURUSD, GBPUSD, and the other Major pairs will be pulled down by this price action .... until the USD hits it's POI. Then things will get interesting!
Take advantage of the USD push higher!
Remember, NFP is Friday! Be careful of wonky price action on Thursday and Friday.
Enjoy!
May profits be upon you.
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USDX,DXYUSDX price is near the important support zone 98.23-97.75. If the price cannot break through the 97.75 level, it is expected that in the short term there is a chance that the price will rebound.
**Very Risky Trade
🔥Trading futures, forex, CFDs and stocks carries a risk of loss.
Please consider carefully whether such trading is suitable for you.
>>GooD Luck 😊
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DXY Bullish Breakout Within Ascending ChannelThis 4-hour chart of the US Dollar Index (DXY) shows price trading within an ascending channel, currently testing a resistance zone around 100.50–100.80. If the resistance holds, a pullback to the lower boundary of the channel or the highlighted retest zone near 99.50 is possible. However, a breakout above resistance may lead to further bullish continuation toward the marked 1st and 2nd target zones above 101. The chart also highlights recent change-of-character (ChoCH) signals, suggesting a shift toward bullish momentum.
TP1 (1st Target): Around 100.85 – 101.00 — just above the current resistance zone.
TP2 (2nd Target): Around 101.40 – 101.50 — the upper boundary of the ascending channel.
Note: If the market does not retest and breaks directly above the resistance zone, we will enter a buy position on the breakout and aim for targets at 100.85 (TP1) and 101.50 (TP2).
DXY Ready to Pop – Watch That 100 Break!After breaking below the key psychological level at 100 and making a low just under 98, the Dollar Index ( TVC:DXY ) has entered a consolidation phase.
Over the past three weeks, price has developed an inverted head and shoulders pattern, with the neckline perfectly aligning with the horizontal resistance at 100 — a strong zone of confluence from both a technical and psychological standpoint.
Despite the current hesitation under resistance, the structure suggests bullish potential. I believe we are approaching a breakout above 100, and once that happens, an acceleration to the upside is likely to follow.
🎯 Target: 102
🔒 Invalidation: A break below 98 would cancel the bullish bias.
As long as the price stays above the 98 area, I remain bullish and expect the dollar to strengthen.
🚀 The breakout hasn’t happened yet — but the pressure is building.
DXY - ANALYSIS👀 Observation:
Hello, everyone! I hope you're doing well. I’d like to share my analysis of DXY (Dollar Index) with you.
Looking at the DXY chart, I expect a price increase towards 101.267. After reaching this level, I anticipate a decline to around 96.00.
📉 Expectation:
Bullish Scenario: Price increases towards 101.267.
Bearish Scenario: After reaching 101.267, a decline to 96.00.
💡 Key Levels to Watch:
Resistance: 101.267
Support: 96.00
💬 What are your thoughts on DXY this week? Let me know in the comments!
Trade safe
USD StrengthGiven the current technical indicators and fundamental backdrop, the DXY may continue to face downward pressure in the short term. However, strong economic fundamentals and potential shifts in Federal Reserve policy could provide support, leading to a stabilization or potential rebound.
Price Action + Fundamentals Point to Dollar StrengthThe current market environment presents compelling evidence for a bullish move in the US Dollar Index (DXY). While some patience is required, the setup is increasingly favorable for the dollar to appreciate in the coming weeks and months.
Key Factors Supporting a Bullish Move:
Monthly Close Above 100.160:
A critical technical level to monitor is the monthly close above 100.160. If achieved, it would signal a strong bullish breakout, setting the stage for a continuation higher. Given current price action and market dynamics, this scenario looks highly probable. However, if the price fails to close above 100.160 and instead breaks below it, we could potentially start looking for short opportunities.
Bond Market Strength (30Y, 10Y, 5Y):
This past week, we witnessed notable strength across the US bond market. Yields declined as prices rose, typically a positive signal for the dollar as it reflects capital inflows into US assets.
COT Report Insights:
The Commitment of Traders (COT) report reveals a critical shift: commercial traders, often considered the "smart money," are beginning to accumulate long positions in the dollar. This change in positioning historically precedes significant bullish moves.
Seasonal Patterns:
Seasonality also favors the dollar during this period. Historically, the dollar tends to strengthen in the mid-year months, aligning perfectly with the current technical and fundamental landscape.
Targets:
Initial Target: 106.120
Given the accumulation signs and supportive macro backdrop, a move towards 106.120 seems very realistic.
DXY Forecast: More Bearish OrderflowThis week, I anticipate further downside movement on the DXY, with price potentially reaching a key area of interest—a bullish order block. While the reaction at this level remains uncertain, my current bias remains bearish unless a break of structure to the upside signals a continuation of the bullish trend.
USDX-BUY straegy Daily chart Regression channelThe USDX shows clearly we should be cautious in selling USD, and this applies across the board. Based on channel and the extreme case we are in, we can bounced back ttowards 101.20-101.70 area in the near term.
Strategy BUY @ 97.80 - 98.20 and take proft in stages 1. @ 100.37 and 2. 101.57.