After break of channal Dollar index is consolidatingAfter break of channal Dollar index is consolidating. It may retest support before forming any trend
USDX trade ideas
Uptrend It is expected that after the pullback to the support range, the upward trend will continue. Otherwise, by crossing the support range, the downward trend will be likely
Bearish DXY Continuation Trade IdeaDXY is showing signs of continued bearish momentum, likely to extend further as selling pressure builds.
Following recent economic data, sentiment remains weak for the dollar, pushing it toward key support levels.
DXY: Market Is Looking Up! Buy!
Welcome to our daily DXY prediction!
We made our analysis today using SMC and ICT trading theories, which, combined with our trading experience all point to the upside. So we are locally bullish biased and the target for the long trade is 104.321
Wish you good luck in trading to you all!
DXY Bearish Trade IdeaExpecting DXY to open with a gap down, looking for an initial fill back up before a potential continuation lower. This setup aims to capture the downside momentum post-fill, as bearish sentiment remains in play. Stops are placed above recent highs to manage risk, with targets aligned to key support levels.
Bullish DXY Trade IdeaDXY is showing signs of bullish momentum on the 1-hour chart, looking to make a move toward the recent swing high. Positive U.S. economic data and ongoing dollar strength could continue driving price up. Stops are set below recent support to manage risk, with an eye on resistance at the 1-hour swing high as a target.
How does the dollar's strength endure amidst domestic turmoil?
A Resilient Currency
Despite a tumultuous political climate and growing social divisions, the U.S. dollar has shown remarkable strength, particularly in recent months. As measured by Bloomberg's Dollar Spot Index, the greenback has surged approximately 3.1% in October alone. This resilience is surprising, given the erosion of trust in American institutions and the increasing polarization of the country.
Why is the Dollar So Strong?
Several factors contribute to the dollar's enduring strength:
1. Safe-Haven Status: The U.S. dollar has long been considered a safe-haven asset. In times of economic uncertainty or geopolitical turmoil, investors often flock to the dollar as a reliable store of value. The current global landscape, marked by geopolitical tensions and economic volatility, has solidified the dollar's status as a safe haven.
2. Interest Rate Differentials: The Federal Reserve's monetary policy plays a crucial role in influencing the dollar's value. By raising interest rates, the Fed makes it more attractive for investors to hold dollar-denominated assets. As a result, the demand for the dollar increases, leading to appreciation.
3. Global Economic Disparity: The U.S. economy, while facing its own challenges, remains relatively strong compared to many other major economies. This economic disparity can lead to capital inflows into the U.S., further boosting the dollar's value.
4. Global Currency Reserve: The U.S. dollar is widely used as a global reserve currency. Central banks around the world hold significant amounts of U.S. dollars, which helps to maintain demand for the currency.
The Disconnect Between Currency and Country
The dollar's strength can be seen as a paradox, given the growing political polarization and social unrest in the U.S. However, it is important to distinguish between the country's political and social climate and its economic fundamentals. While the former may impact investor sentiment in the long run, the latter has a more immediate impact on the currency.
As long as the U.S. economy remains relatively stable and the Federal Reserve continues to pursue sound monetary policies, the dollar is likely to maintain its strength. However, it is essential to monitor geopolitical risks, global economic conditions, and domestic political developments that could potentially impact the dollar's value.
A Word of Caution
While the dollar's current strength is impressive, it is important to remember that market conditions can change rapidly. A sudden shift in investor sentiment, a change in Federal Reserve policy, or a significant geopolitical event could lead to a decline in the dollar's value.
It is crucial for investors to stay informed about global economic and political developments and to diversify their portfolios to mitigate risk. By understanding the factors that influence the dollar's value and making informed investment decisions, individuals can navigate the complex and ever-changing global financial landscape.
DXY plan 📈 **USD Index Technical Outlook** 📈
The U.S. Dollar Index is approaching a critical resistance level, which previously triggered a substantial bearish response. However, recent price action reveals an inability to push lower, signaling a potential shift in momentum towards the upside.
- Key Level to Watch : 104.500 – A decisive break above this resistance could pave the way for further bullish movement, suggesting renewed strength in the dollar.
- Market Sentiment**: Failure to establish lower lows underscores increasing bullish interest, enhancing the probability of an impending breakout.
A Bullish Turn: Investors Embrace the DollarA Shift in Sentiment
In a surprising turn of events, hedge funds, asset managers, and other speculators have shifted their stance on the US dollar, moving into bullish positions in the week ending October 22nd. This significant shift, totaling approximately $9.2 billion in long dollar bets, according to data from the Commodity Futures Trading Commission (CFTC) compiled by Bloomberg, marks a dramatic departure from the previous week's net short position.
A $10.6 Billion Swing
This abrupt change in sentiment represents a substantial $10.6 billion swing from the previous week, when traders were actively betting against the greenback. The reasons behind this bullish pivot are multifaceted, primarily driven by a confluence of factors, including stronger-than-expected US economic data and heightened demand for safe-haven assets as the US election approaches.
A Recalibration of Fed Expectations
A series of positive economic reports released throughout October has forced a recalibration of previously dovish Federal Reserve expectations. The robust economic indicators have raised the possibility of a more hawkish monetary policy stance from the Fed, which could potentially lead to higher interest rates. Historically, a stronger US dollar has been correlated with higher interest rates, making the greenback an attractive investment for global investors.
Election-Year Uncertainty
As the US presidential election draws near, geopolitical uncertainty and market volatility tend to increase. In such times, investors often seek refuge in safe-haven assets like the US dollar. The dollar's perceived status as a reliable store of value, combined with the potential for increased market volatility, has likely contributed to the recent surge in demand for the currency.
Implications for the Global Economy
The shift towards a bullish dollar position has significant implications for the global economy. A stronger dollar can negatively impact emerging market economies that rely heavily on dollar-denominated debt. Additionally, it can make US exports more expensive, potentially hindering economic growth. However, for countries with strong economic fundamentals and current account surpluses, a stronger dollar can be beneficial.
A Cautious Outlook
While the recent bullish trend in the dollar is notable, it is essential to maintain a cautious outlook. The global economic landscape remains uncertain, and a variety of factors, including geopolitical events, trade tensions, and central bank policies, could influence the dollar's trajectory. As such, it is crucial for investors to carefully consider the risks and rewards associated with dollar-based investments.
In conclusion, the recent shift towards a bullish dollar position reflects a significant change in market sentiment. A combination of stronger-than-expected US economic data and heightened demand for safe-haven assets has driven investors to embrace the greenback. While the implications of this trend for the global economy are far-reaching, it is essential to remain vigilant and adapt to evolving market conditions.
Bearish DXY IntradayThe DXY is showing signs of potential downside pressure on the intraday charts, with recent economic data dampening bullish momentum. The index appears to be overextended after a strong run-up, and a pullback could occur as the market reassesses the U.S. dollar’s strength. I’m looking for a move down to retest support levels below, anticipating continued selling pressure as the index corrects intraday.
DXY Is Bullish! Long!
Please, check our technical outlook for DXY.
Time Frame: 4h
Current Trend: Bullish
Sentiment: Oversold (based on 7-period RSI)
Forecast: Bullish
The market is testing a major horizontal structure 104.214.
The above observations make me that the market will inevitably achieve 104.676 level.
P.S
Please, note that an oversold/overbought condition can last for a long time, and therefore being oversold/overbought doesn't mean a price rally will come soon, or at all.
Like and subscribe and comment my ideas if you enjoy them!
Dollar index bullish momentum continues now at major resistance Dollar index bullish momentum continues now at major resistance level
Weekly Recap & Market Forecast $SPX (Oct 27th—> Nov 1st)Market Forecast (Updated 10/27/2024)
**SPX** - Tesla and NFLX started the tech earning season extremely bullish, The rest of the Mag 7 reports this week so there's def going to be volatility.
Next resistance: 5,913 and 5,940
Next support: 5,770, followed by 5,570
Weekly Sentiment: Oversold (Possible bounce week)
**Dollar Index:**
DXY- Canada and china just cut rates, and now ECB is considering a 50 BPs cut. So DXY may continue to see strength but that also puts more pressure for fed to more rates.
Next resistance: 104.60 and 106.10
Next support: 103.20 and 102.60
Weekly Sentiment: Bearish (cross to downside)
**Put to call Ratio: 1.60—> 1.39
Next FOMC date: 11-06-2024**
**Fear & Greed Index: 75—>59**
Market News Report - 27 October 2024The greenback was again a bullish force in the past week. Other currencies that put up an upward fight include the Swiss franc and euro. Then, the Bank of Canada delivered an expected cut in the CAD interest rate.
Let's see what to expect for our beloved forex market in the coming weeks in our market report.
Market Overview
Below is a brief technical and fundamental analysis breakdown for all major currencies.
US dollar (USD)
Short-term outlook: 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.
Still, the central bank has signalled the potential for two 25 bps drops by the end of this year. Meanwhile, a 50 bps cut has pretty much been priced out, with STIR (short-term interest rate) markets seeing a 14% chance of a hold next month.
Keep an eye out for NFP (Non-Farm Payrolls) data this coming Friday. This will probably be the next USD driver, along with the US elections next Tuesday.
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.
The latest strong NFP report has raised expectations for a 25 bps rate cut (instead of 50 bps), which is giving USD a boost in the near term. So, there is no extreme dovish pricing anymore.
While the bearish bias remains, the dollar is gaining amid a broad pullback. This idea could prove even more relevant if Donald Trump wins the election on 05 November. Upcoming labour and GDP data will also be key in determining USD's long-term future.
Euro (EUR)
Short-term outlook: bearish.
The STIR markets were predictably accurate as the European Central Bank (ECB) cut the interest rate recently. However, they remain data-dependent on what to do in the future (although they are quite concerned about slow growth).
Also, the past week saw weaker economic data across various European nations. Finally, short-term interest rate markets have indicated an 84% chance of a rate cut in December.
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 this week - 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. Furthermore, a threat of a trade tariff with Trump could be negative.
However, any improvements in economic data (according to the ECB) would be a turnaround. So, we are changing our long-term bias from 'bearish' to 'weak bearish' now.
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.” Also, the central bank's higher-ups stressed "a gradual need" to cut rates.
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. Also, weak CPI, labour, or GDP data should be expected to back up the bearish bias. To add further to this point, the last GDP print shows a poor UK economy. However, the central bank hopes for lower service inflation, which may provide relief.
Another interesting point is the latest CFTC (Commodity Futures Trading Commission) report, showing that GBP longs have been stretched to the upside. So, bullishness should be limited at some point.
Japanese yen (JPY)
Short-term outlook: bullish.
The primary bullish catalyst is the Bank of Japan’s (BoJ) recent decision to hike the interest rate. STIR markets expect a hold at the next meeting on Wednesday (but a hike at the start of next year).
Governor Ueda of the BoJ noted that despite domestic economic recovery, recent exchange rate movements have reduced the upside risk of inflation (which has been on an upward trajectory). All of this backs up the potential for a rate hold or hike.
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. However, high iron prices have supported the former.
Finally, recent positive unemployment data gives a base case for a hold in the RBA interest rate meeting early next month.
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 weaker on the charts. USD/CAD is almost at the point of knocking on the key resistance at 1.39468, while the key support lies 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 will 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.
Conversely, 'safe haven flows,' and geopolitical risks can positively support the currency.
As with other central banks, inflation is a crucial metric in the SNB's policy rates.
Conclusion
In summary:
The USD seems particularly strong (despite being fundamentally bearish), with the upcoming NFP release and US elections as the events to watch.
This week's main high-impact news event is Wednesday's JPY interest rate decision.
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.
DXY TRADE SETUPINDEX : DXY
✔ Classic BULLISH formation
DXY is holding continuous UP Trend so after market retracement I can take BUY entry . If your analysis matches it take a trade otherwise skip the trade.
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Idea for next week.The Dollar Index (DXY) is currently trading at $104.123, up by 0.10%, but hovers close to a key pivot point at $104.144. This level aligns with the 50-day EMA of $104.146, marking it as a critical zone for short-term direction.
Should DXY break above $104.15, we might see upward momentum build, pushing toward immediate resistance at $104.281, with additional targets at $104.407 and $104.545.
However, if the dollar falls below $104.144, support at $104.006 could be tested, with further downside risk toward $103.820. Traders should note that maintaining above the pivot is essential for sustaining a bullish trend in the near term.
THE US DOLLAR is still King?The US Dollar Index has found support near all that former resistance from the past decade. The polarity here in the US Dollar is very real.
Caution With $DXY At SupportThe TVC:DXY is touching the 200 week moving average and also the median of the bear pitchfork. Double support usually provide a bounce, those who are bullish the 50 basis cut might be trapped and rekt.
DXYDxy overall is uptrend as we can see dxy is finishing making a pullback which means next week we may see USD to be strong and we countinue to buy usd/jpy,sell gbp/usd and so on.have a good day
Dxy could rally on Monday Obviously, we tapped into our h4 demand area. W reversal pattern has been formed, its only right to buy and not sell .
Dxy is bullish (perfect trend)We have seen a positive reaction to the upside as we close the trading week📈⬆️.
Price had two trading zones that both meet the criteria for a probable setup☑️📝, and we have seen a reaction from zone 1 after sellside liquidity was taken. Price went on to break structure giving a bullish market structure shift and a new trading zone.
We might see price rise further to the upside until it reaches an unmitigated supply zone.
Dollar Index - Election Years Comes With Volatile SwingsThe U.S. Dollar Index tracks the strength of the dollar against a basket of major currencies. DXY was originally developed by the U.S. Federal Reserve in 1973 to provide an external bilateral trade-weighted average value of the U.S. dollar against global currencies. U.S. Dollar Index goes up when the U.S. dollar gains "strength" (value), compared to other currencies. The following six currencies are used to calculate the index:
Euro (EUR) 57.6% weight
Japanese yen (JPY) 13.6% weight
Pound sterling (GBP) 11.9% weight
Canadian dollar (CAD) 9.1% weight
Swedish krona (SEK) 4.2% weight
Swiss franc (CHF) 3.6% weight
US Dollar Slips, Business Spending Rises: The dollar edges lower despite a 4-week winning streak, as positive economic data dampens rate cut expectations.
US business spending plans exceed expectations, while German business sentiment improves.
50/50 going into next week even though business has been conducted @ 104.450. There is still the potential for next weeks price action to attack the daily order block @ 104.801 whilst punishing buyers by continuing to sell-off to 103.444, a target previously mentioned last week.
