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Can DXY Stabilize at 99.50-100 Area Despite FED 50bp Cut? Dollar Index – DXY has turned bearish after the corrective rally stopped at 105.70-106, an important resistance area at the end of June. Since then, the price even accelerated lower through summer so it appears that a bearish impulse is in play, but with recent touch of a new swing low, DXY is possibly in fifth wave, so be aware of some support in weeks ahead. But closer look shows that there is still some room left for 99.50-100 area, but if this will occur and structure a wedge shape, then we should be aware of reversals, and new correction. So as said, the price could still see a bit more weakness into the 5th wave to fully complete this ending diagonal, but then dollar can turn for a new correction, considering that recent dollar weakness has been mainly driven by these rate cut expectations, so now that this 50bp cut has been done, the dollar may stabilize due to a “buy the rumor, sell the news” effect. However, any rally will be temporary, as I think that dollar has room for much more weakness, bu ideally after another a-b-c recovery. 101.80 -102 is strong resistance. GH
TVC:DXY
by ew-forecast
USD/JPY Forecast: Bullish Bias Expected – Key Factors to Watch.USD/JPY Forecast: Bullish Bias Expected – Key Factors to Watch (20/09/2024) As we analyze the USD/JPY pair on 20/09/2024, the outlook appears to be slightly bullish for this week and next. Several key drivers are pushing the U.S. dollar higher against the Japanese yen, creating an attractive opportunity for traders. In this article, we’ll break down the fundamental factors behind this forecast and highlight the elements influencing USD/JPY price action in the coming days. 1. US Dollar Strength Bolsters USD/JPY The strength of the U.S. dollar is a critical factor contributing to the bullish bias in USD/JPY. With the Federal Reserve signaling a commitment to maintaining high interest rates for an extended period, the greenback remains in demand. Fed officials have recently emphasized their concerns about persistent inflation, leading markets to believe that U.S. interest rates will stay elevated for longer than previously expected. This hawkish monetary stance, coupled with strong economic data, has made the U.S. dollar more attractive to investors. As a result, USD/JPY has been moving higher, with the strong dollar likely to continue exerting upward pressure on the pair. Key SEO keywords: USD/JPY forecast, US dollar strength, Federal Reserve policy, interest rate hike, USD/JPY price action. 2. Dovish Bank of Japan Keeps the Yen Weak On the other side of the equation, the Japanese yen remains under pressure due to the Bank of Japan’s (BoJ) ultra-loose monetary policy. The BoJ has shown no signs of tightening monetary policy in the near term, despite global inflationary trends. Japan’s central bank continues to prioritize economic support, maintaining low interest rates while avoiding any drastic policy shifts. This dovish stance contrasts sharply with the Federal Reserve’s hawkish policy, widening the interest rate differential between the U.S. and Japan. This is a major driver of USD/JPY’s bullish outlook, as investors gravitate towards the higher-yielding U.S. dollar over the lower-yielding yen. Key SEO keywords: Bank of Japan policy, Japanese yen weakness, dovish BoJ, USD/JPY interest rate differential, yen depreciation. 3. Interest Rate Differentials Favor USD/JPY Upside One of the most important factors pushing USD/JPY higher is the widening interest rate differential between the U.S. and Japan. While U.S. Treasury yields remain attractive, the yield on Japanese government bonds remains low due to the BoJ’s dovish policy stance. This gap in yields makes the U.S. dollar more appealing for investors seeking better returns. The widening interest rate gap is a key bullish signal for USD/JPY, as capital continues to flow into U.S. dollar-denominated assets. As long as the Federal Reserve maintains its hawkish tone, and the BoJ remains accommodative, this dynamic will likely support the bullish bias for USD/JPY. Key SEO keywords: Interest rate differentials, U.S. Treasury yields, Japanese bond yields, USD/JPY bullish outlook, capital flows into USD. 4. Japanese Economic Weakness Adding Pressure on the Yen Another factor supporting the bullish bias for USD/JPY is the ongoing weakness in the Japanese economy. Japan has struggled with slow economic growth and weak inflation, further justifying the BoJ’s cautious approach to monetary policy. Domestic consumption remains low, and Japan’s economic recovery has been uneven. As a result, the Japanese yen continues to face downside pressure, while the U.S. dollar benefits from stronger economic fundamentals. This divergence between the U.S. and Japanese economies adds to the case for a stronger USD/JPY in the coming weeks. Key SEO keywords: Japanese economic weakness, low inflation in Japan, weak yen, Bank of Japan policy, USD/JPY forecast. 5. USD/JPY Technical Analysis Suggests Further Upside Potential From a technical standpoint, USD/JPY is showing signs of further upside. The pair has been testing key resistance levels, and if these levels are broken, we could see a more significant bullish move. The recent price action has shown strength, with USD/JPY consistently finding support at higher lows. Traders should watch for a potential breakout above these resistance zones, as it could signal further gains for USD/JPY. With strong fundamentals supporting the pair, the technical outlook aligns with the overall bullish bias. Key SEO keywords: USD/JPY technical analysis, key resistance levels, USD/JPY price action, bullish trend, support and resistance. Conclusion: Bullish Bias Expected for USD/JPY In conclusion, several fundamental and technical factors support a slightly bullish bias for USD/JPY over the next couple of weeks. The ongoing strength of the U.S. dollar, the dovish stance of the Bank of Japan, favorable interest rate differentials, and Japan’s economic challenges all point towards further upside potential for USD/JPY. Traders and investors should closely monitor these key drivers as they make their trading decisions. As always, staying updated on central bank policies, economic data, and technical signals will be crucial in navigating the USD/JPY price action during this period. Key SEO keywords: USD/JPY forecast, bullish bias, USD/JPY key drivers, US dollar strength, Bank of Japan policy, interest rate differential, USD/JPY technical analysis.
Long
by PERFECT_MFG
U.S. Dollar Index (DXY)U.S. Dollar Index (DXY) DXY is sitting at an important KL (Key Level) at around 100.600 . On a bigger timeframe we are still bullish on dollar. Several factors support Dollar strength: The Dollar is expected to maintain its strength for some time. Still, some risks could lead to further appreciation, including Euro area concerns, changes in Chinese currency policy, and how markets interpret US growth prospects. Interest rates: With yesterday’s interest rate decisions (50BPS) we saw DXY spike down . We do have to keep in mind if interest rate cuts continue, we might turn bearish on DXY, resulting in less demand in U.S. Dollar and more demand in stocks and gold . If however, we continue to the upside with DXY, it will confirm our XAUUSD sells that we have given the analysis for. Keep in mind: The aim of raising of the Fed's rates is to adjust the inflation level to a target value. Interest rate hike may have a positive effect on dollar quotes, while lowering can be seen as negative for the US dollar. Happy trading! FxPocket
TVC:DXYLong
by FxPocket
DXY: Some more downside is expected. Is it a buy after?The U.S. Dollar Index is on strong bearish levels on the 1D technical outlook (RSI = 36.538, MACD = -0.480, ADX = 39.006) as it is extending the Channel Down with a rejection today exactly on its top. The very same Channel Down was seen last October-December (2023) and declined by -6.25% before recovering. The buy signal was a DB (double bottom) on the 1D RSI. Consequently we will remain bearish on DXY (TP = 99.550) and only buy after we get a clear rebound (around -6.25%) and a DB on the RSI. See how our prior idea has worked out: ## If you like our free content follow our profile to get more daily ideas. ## ## Comments and likes are greatly appreciated. ##
TVC:DXYShort
by InvestingScope
EUR/USD Bullish Setup: Anticipating a Bounce from Key SupportHello traders! Today, I’m analyzing the EUR/USD pair on the 1-hour time frame. We’ve seen some strong movement recently, but right now, the price is approaching a critical support level. This level has held strong in the past, and based on my analysis, I believe we could see a bullish bounce from this zone. Here’s what I’m looking at: Support Level: The price is nearing support level, a key area where it has previously bounced. If the price retests this level and holds, it could signal a continuation of the bullish trend. Price Action Patterns: I’ll be watching closely for bullish reversal candlestick patterns, like a hammer or bullish engulfing pattern, to confirm the strength of the support. This would suggest buyers are stepping in, and the price could start to rise. Momentum Check: I’ll keep an eye on the overall market momentum by observing the price movement around the support zone. A slowing down of the sell-off or a shift in momentum could further support the idea of a bounce. Risk Management Strategy: To manage my risk, I’ll set a stop loss slightly below the support level to safeguard against any potential breakdown. For profit targets, I’m eyeing as the first goal, with room for more gains if the bullish momentum continues.
Long
by WaveRiders2
Lower rates means Silver to 40?The US dollar is trending lower. Rates are expected to be lowered. Unemployment number rising. Presidential election has candidates talking about give aways. War is still happening. China is in deflation. Banks are seeing credit card delinquency's rise. There are 2 "technical" patterns implying a 40 ish silver price if we continue to break out. And remember all times highs are at 50 ish. The recent weeks price action is encouraging and is implying breakout higher. twitter/x is full of "silver squeeze" chatter again. good to see the buzz start up again. Be safe.
TVC:SILVERLong
by optionfarmers
US DOLLAR - Boxed RangeUS DOLLAR is trading SUPPORT and RESISTANCE zones within a boxed RANGE. It is respecting a range of 100.53 - 101.93, with respective bounces on either end, keeping it within its BOXED RANGE. When I'm speaking about a BOXED RANGE, what I mean is that the RANGE ISN'T TIGHT like a normal range, where its looking for volume before a big move, these types of ranges have volume and are easier to read as they respect KEY ZONES, for example right now they are respecting 100.53 - 101.93. We should wait for the US DOLLAR to enter either SUPPORT or RESISTANCE to enter a trade, we can wait for a rejection + bounce or wait for a breakout. If the US DOLLAR breaks to the downside (BEARISH) I would expect for the overall US markets to continue it's BULLISH movements, as usually the US MARKET IS INVERSELY PROPORTIONAL TO THE US DOLLAR INDEX... Conversely if it shows BULLISH signs and begins to move towards the SUPPORT ZONE, I will be looking for the US MARKET to move BEARISH.
TVC:DXY
by I3ig_Trades
Market Forecast for Gold into $3,000Gold's consolidation phase within a rising wedge pattern illustrated market uncertainty ahead of the U.S. presidential election and broader economic factors. The price action indicated a retracement towards key support levels at 2,470 and 2,367 USD, aligning with typical market cycles that precede significant rebounds. This phase suggested a corrective pullback within the broader uptrend, a natural part of the market cycle where consolidation and profit-taking occurred before the next rally. The pullback towards the 2,367 USD level acted as a springboard for a renewed uptrend. Seasonal trends and unforeseen geopolitical events increased gold’s safe-haven appeal, contributing to price acceleration towards the long-term target to 3,000 USD. With the U.S. presidential election on the horizon, unclear economic policies from potential candidates contributed to market hesitation. This uncertainty often drove investors toward safe-haven assets like gold. Central banks' responses, particularly from the Federal Reserve, Bank of Japan and the European Central Bank, were critical. Interest rate adjustments, inflation controls, and currency interventions all played a role in shaping gold's trajectory. When central banks signaled that inflation was persisting, it accelerated gold’s ascent. Conversely, when inflation moderated and interest rates rose significantly, it created temporary pressure on gold prices. The retracement towards 2,470 and 2,367 USD levels offered a strategic entry point for investors looking to position themselves. Those who took that trade made money, and I thank you for believing in this chart.
OANDA:XAUUSD
by johnconner966
EUR/USD Long – Targeting Rebound from 1.1000EUR/USD is currently trading near the 1.1000 support area, a key psychological level that has historically acted as a strong support. This setup presents an opportunity to go long, aiming for a rebound from this level. Technical Analysis: • Support Zone: The 1.1000 area has acted as a significant support level, with previous price action showing strong buyer interest around this zone. • Risk Management: Place a stop-loss slightly below the 1.1000 level to protect against a potential breakdown. A reasonable stop could be around 1.0980, just below the recent lows. Trade Setup: • Entry: Enter long around the current price, near the 1.1000 support level. • Target: The initial target for this long setup is around 1.1050, where the next resistance level is likely to be tested. A more aggressive target could be around 1.1100, depending on market conditions. • Stop-Loss: Set the stop-loss at 1.0980 to manage risk effectively. Market Sentiment: • Bullish Potential: The market may see a rebound from this key level, especially if USD weakness continues or if there is a shift in broader market sentiment. • Key Levels to Watch: Monitor the 1.1020 level for early signs of bullish momentum. A break above this level could signal the continuation of the upward move. This trade focuses on capitalizing on the potential rebound from a key psychological level, with clear entry, target, and risk management strategies. Stay alert to market conditions and adjust as necessary. Note: Please remember to adjust this trade idea according to your individual trading conditions, including position size, broker-specific price variations, and any relevant external factors. Every trader’s situation is unique, so it’s crucial to tailor your approach to your own risk tolerance and market environment.
Long
by AR33_
2
GBPJPY | Trade ideaOn Tuesday, the yen gained support as Bank of Japan Governor Kazuo Ueda maintained a hawkish stance, indicating the central bank might raise rates further if the economy meets expectations. Ueda’s comments were part of a document presented to a government panel led by outgoing Prime Minister Fumio Kishida, where he detailed the BOJ’s July policy decision. His remarks emphasized that despite global market volatility, partly triggered by the BOJ's July rate hike, Ueda remains committed to raising borrowing costs if the bank’s projections are realized.
Long
by DynamicCapital-FX
DXY: Key Levels to Watch Ahead of CPI Data ReleaseWith the CPI data release on the horizon, the DXY is hovering near critical levels. Traders should keep a close eye on the price action as volatility could spike. The red and green lines on the chart mark important zones that may influence the market’s next move—whether it's a breakout or a reversal. Curious how these levels might react to the news? Drop a comment below, and follow for more insights as the data approaches! *Disclaimer: This is not financial advice. Always trade responsibly!*
CAPITALCOM:DXY
by Remora_traders