Bullish momentum persists on DXY
Technical Perspective:
DXY extended its rally within the ascending channel, following a breakout of the descending trend line. The price remains in an uptrend with higher swing points seen. A further rise toward the 106.50 resistance and ascending channel's upper bound might occur if DXY sustains its bullish momentum. Conversely, a retracement could prompt a retest of the 105.20 trendline breakout zone and support. Ichimoku Cloud is showing signs of bullish pressure as well.
Fundamental Perspective:
Traders are betting on a continued selloff in US Treasury bonds, anticipating that Donald Trump's policies will drive inflation and keep interest rates high, boosting the dollar's appeal. The open interest in two-year Treasury futures has surged as investors position for rising yields ahead of US key inflation data.
Elsewhere, Elon Musk and Vivek Ramaswamy will lead Trump’s new initiative to cut government waste and reduce federal spending, aiming for 2 trillion USD in savings. The effort will focus on dismantling bureaucracy and reforming federal agencies.
Author: Li Xing Gan, CMT, CFTe,
Financial Market Strategist Consultant to Exness
DXY extended its rally within the ascending channel, following a breakout of the descending trend line. The price remains in an uptrend with higher swing points seen. A further rise toward the 106.50 resistance and ascending channel's upper bound might occur if DXY sustains its bullish momentum. Conversely, a retracement could prompt a retest of the 105.20 trendline breakout zone and support. Ichimoku Cloud is showing signs of bullish pressure as well.
Fundamental Perspective:
Traders are betting on a continued selloff in US Treasury bonds, anticipating that Donald Trump's policies will drive inflation and keep interest rates high, boosting the dollar's appeal. The open interest in two-year Treasury futures has surged as investors position for rising yields ahead of US key inflation data.
Elsewhere, Elon Musk and Vivek Ramaswamy will lead Trump’s new initiative to cut government waste and reduce federal spending, aiming for 2 trillion USD in savings. The effort will focus on dismantling bureaucracy and reforming federal agencies.
Author: Li Xing Gan, CMT, CFTe,
Financial Market Strategist Consultant to Exness
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.