DXY
GOLD → Interest rates are down, but why is gold falling?FX:XAUUSD falls to 2581. Yesterday's news had a negative impact on the market and it's not about rate cuts. Technically the price confirms the bearish nature of the market.
The main reason for the decline in gold prices is the Federal Reserve's caution about lowering interest rates amid the latest economic data. The US central bank lowered the interest rate by 0.25% to the range of 4.25%-4.50% as expected, but for the next year it forecasts 2 rate cuts, which is much less than expected.
The Fed's hawkishness has played its role: the dollar is rising, markets are falling.
Today all eyes are on GDP and initial jobless claims.
Technically, the price is out of the global channel, breaking the support, gold updates the low to 2581.
Resistance levels: 2620, 2630, 2636
Support levels: 2616, 2612, 2603
After updating the low, a retest of the previously broken channel boundary and imbalance zones is formed. False breakdown of key resistance, for example 2620 or 2630 and subsequent consolidation of the price below these zones may lead to further decline.
Regards R. Linda!
GOLD FURTHER SELL OFF?! (UPDATE)Gold has officially broken below the 'Flat Correction' channel & Wave 3 sell's are in full effect! This sell volatility was induced by the Federal Reserve lowering the Interest Rate down to 4.5% last night.
As per usual fundamentals come into effect AFTER and push price towards our technical bias. I've said it before & I'll say it again. Politics & Economic data is one of the most manipulated facades out there😉
NZDUSD → The price could fall another 2.5%FX:NZDUSD is forming a return to a strong support zone after testing it after a year. Against the backdrop of a rising dollar, the chances of a support breakout are growing.
The downtrend, rising dollar, weak fundamental background for NZD play a key role in forming a bear market. The price is testing the key resistance and trying to enter the selling zone. At the moment the price is restrained by the descending channel support and if the price manages to break this line and consolidate below, strong selling may be formed further, as there are no obstacles below it until 0.562.
Resistance levels: 0.577, 0.5817
Support levels: 0.575, 0.562
I do not exclude the possibility of correction if the buyers hold the support. But there is no chance of a trend change. Another retest of the support may lead to a breakdown and further fall to 0.562
Regards R. Linda!
DXY (THE DOLLAR INDEX)1. If the Dollar Breaks Out Above Resistance
This scenario indicates bullish momentum, meaning the dollar could strengthen further.
Implications:
Continuation of Uptrend: Breaking resistance often signals strong buying interest or positive sentiment.
Next Target: The price may move toward the next resistance level or a new high.
Market Sentiment: This could result from strong economic data, higher interest rate expectations, or geopolitical factors favoring the dollar.
Traders’ Actions:
Enter long (buy) positions after confirming the breakout.
Set stop-loss orders just below the breakout level to manage risk.
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2. If the Dollar Fails to Break Resistance
This scenario indicates a potential reversal or consolidation below the resistance level.
Implications:
Reversal to Downtrend: Failure to break resistance often signals profit-taking or bearish sentiment.
Support Retest: The price might fall to test lower support levels.
Market Sentiment: This could occur due to weak economic data, dovish central bank policies, or stronger foreign currencies.
Traders’ Actions:
Consider short (sell) positions if rejection at resistance is confirmed.
Monitor for bearish patterns (e.g., double top or bearish engulfing candles).
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Confirmation is Key
Volume Analysis: A breakout with high volume is more reliable, while rejection with high selling volume confirms resistance.
Economic Data Events: Major announcements like interest rate decisions or employment data can influence the direction.
Would you like help with specific dollar pairs or technical analysis?
USDX, DXYUSDX price is in a correction phase. Currently, the price is near the support zone of 105.61-104.70. If the price cannot break through the 104.70 level, it is expected that there is a chance that the price will rebound. Consider buying the red zone.
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DXY Weekly - Dollar IndexSimple Trading - Wyckoff Event
If the event has started then the dollar index will have one heck of a year coming into Q1 and Q2.
Watch for volume change on the intraday day time frame and expect the trend to continue bullish.
Long story short the DXY is growing strong with the rise of BTC and Donald Trump being elected President.
Targets:
109.40 - previous support
111.50 - .616 Fibb level
113.80 - .50 Fibb level
DXY SELL US Dollar rises after Fed's cut and hawkish outlook
DXY trades rose above 107.80, reacting to the Fed’s anticipated rate cut. Markets parse new rate projections for 2025 and 2026. Traders assess Powell’s cautious yet hawkish remarksThe US Dollar Index (USDX) is an index (or measure) of the value of the United States dollar relative to a basket of foreign currencies. These currencies are the Euro (constituting 57.6% of the weighting), Japanese Yen (13.6%), British Pound (11.9%), Canadian Dollar (9.1%), Swedish Krona (4.2%) and Swiss Franc (3.6%). The index started in 1973 -with the absolution of Bretton Woods- with a base of 100.000, and values since then are relative to this base. For example, if the current reading says 99.800, this means that the dollar has fallen 0.2% since the start of the index (99.800 - 100.000).
US Dollar Index on Wikipedia
Being the Dollar Index a geometrically weighted index and not a trade-weighted one, it is too concentrated in Europe and does not include two of the U.S. top four trading partners Mexico and China. It does not appear to be used by corporates or many asset managers, like mutual funds, insurance companies, and endowments. It is primarily a speculative vehicle. It's also important to acknowledge that a geometric mean artificially lowers the value of the USD over time.
More about the basics of the Dollar index!
ORGANIZATIONS, PEOPLE AND ECONOMIC DATA THAT INFLUENCE US DOLLAR INDEX
The US Dollar Index news can be seriously affected by the decisions taken by these organizations and people:
Fed, the Federal Reserve of the United States whose president is Jerome Powell. The Fed controls the monetary policy, through active duties such as managing interest rates, setting the reserve requirement, and acting as a lender of last resort to the banking sector during times of bank insolvency or financial crisis.
The US Government: events as administration statements, budget, new laws and regulations or fiscal policy can increase or decrease the value of the Dollar Index.
The US Treasury Dept that defines its role as “the steward of U.S. economic and financial systems, and as an influential participant in the world economy.”
US GDP (Gross Domestic Product), the total market value of all final goods and services produced in the United States of America. It is a gross measure of market activity because it indicates the pace at which a country's economy is growing or decreasing. Generally speaking, a high reading or a better than expected number is seen as positive for the Dollar Index, while a low reading is negative.
WANT TO LEARN MORE ON US DOLLAR INDEX?
The US Dollar Index
Steve Misic Steve Misic
Online Trading Academy
When I write the Online Trading Academy Forex newsletter, I give my opinion about what I believe is happening to the currencies of the world based on the news I hear, the experts I follow, and my personal experiences of the economic cycles I have seen in the past. This fundamental information helps me understand what reports and indicators the economists of the world believe will shape future events.
The Dollar Index – It Makes Sense Until it Closes
Don Dawson Don Dawson
Online Trading Academy
Have you watched the US Dollar Index (USDX) Futures contract trade during the day? Do you notice that with each price change the intervals are always a minimum tick of .005? And then at the end of the day when you look at your daily candle of the USDX you see a closing price like 97.197.
A Look at the US Dollar Index
Sam Evans Sam Evans
Online Trading Academy
Over the last few months especially, there’s been a lot of focus in the world of Currency Trading upon the state of the US Dollar. No matter what your opinion is of the Greenback, it is still, without question, regarded as the world’s primary reserve currency and holds its weight of recognition across the board.
Being the Dollar Index a geometrically weighted index and not a trade-weighted one, it is too concentrated in Europe and does not include two of the U.S. top four trading partners Mexico and China. It does not appear to be used by corporates or many asset managers, like mutual funds, insurance companies, and endowments. It is primarily a speculative vehicle. It's also important to acknowledge that a geometric mean artificially lowers the value of the USD over
Silver XAG/USD Bearish FlagThe XAG/USD pair on the M30 timeframe presents a potential selling opportunity due to a recent downward breakout from a well-defined Flag pattern. This suggests a shift in momentum towards the downside in the coming Hours.
Key Points:
Sell Entry: Consider entering a short position around close to the breakout level. This offers an entry point near the perceived shift in momentum.
Target Levels:
1st Support – 30.11
2nd Support – 29.86
Your likes and comments are incredibly motivating and will encourage me to share more analysis with you.
Best Regards, KABHI FOREX TRADING
Thank you.
Sell EURUSD Bearish ChannelThe EUR/USD/USD pair on the M30 timeframe presents a potential selling opportunity due to from a well-defined Channel pattern. This suggests a shift in momentum towards the downside in the coming Hours.
Key Points:
Sell Entry: Consider entering a short position around close to the breakout level. This offers an entry point near the perceived shift in momentum.
Target Levels:
1st Support – 1.0437
2nd Support – 1.0410
Your likes and comments are incredibly motivating and will encourage me to share more analysis with you.
Best Regards, KABHI FOREX TRADING
Thank you.
SHORT EUR/USDEURUSD is bearish and in a downtrend on the weekly timeframe.
EURUSD confirmed its down movement after breaking 1.05 area and the double top forming at that neckline at that timeframe.
The next target is below parity to previous year low 0.9535 and at the lower of the down channel & next big demand support zone at area 0.84-0.85.
USOIL Best Level to Short/Hold 10% swing trade setup🔸Hey guys, today let's review the 2 hour chart for US oil . Any upside is
limited by strong overhead resistances, currently trading near range highs
so overall risk/reward shifting in bears favor.
🔸Strong resistances will cap upside at 72.00 usd / 72.50 usd. right now
locked in tight trading range, however expecting final pump to trigger overhead stop losses before reversal and subsequent sell off event.
🔸Recommended strategy for BEARS: wait for the final pump before short selling from strong overhead resistances at 72.00 and 72.50 SL fixes at 74.00 usd, TP1 bears is 68 usd TP2 bears is 66 usd. swing trade setup, patience required. good luck!
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Trading Futures , Forex, CFDs and Stocks involves a risk of loss.
Please consider carefully if such trading is appropriate for you.
Past performance is not indicative of future results.
Always limit your leverage and use tight stop loss.
EURUSDHello Traders 👋
What are your thoughts on EURUS?
in recent week, the EUR/USD Pair
Has been in a downward trend and is
currently trading below a significant
Resistance zone.
As long as the price remains below
This resistance.the bearish movement
Is expected to continue, however if the price breaks above the identified
Resistance zone.this analysis will be invalidated and potential trend reversal
May occur,
GOLD FURTHER SELL OFF?! (UPDATE)Gold buyers are looking very weak towards the bottom part of this 'Flat Correction' channel. We've already seen a melt off of 950 PIPS since we got a Wave 2 rejection at $2,725.
This impulse move would count as 'Minor Wave 1' of the 'Major Wave 3' downwards trend. Any consolidation we see will be 'Minor Wave 2' correction. YOU WANT TO ENTER SELL POSITIONS on these wave 2 corrections, if you haven't already!
XAUUSD - gold waiting for the Federal Reserve meeting!Gold is below the EMA200 and EMA50 in the 1H time frame and is trading in its medium-term bearish channel. In the authentic failure of the support area, we can see the continuation of the gold decline and the demand zone. Within the zone of demand, we can buy with a suitable risk reward. If the resistance range is broken, you can sell in the supply zone.
The Federal Reserve’s monetary policy meeting is scheduled for today. According to a recent report by Crédit Agricole, it is expected that during the December meeting, the interest rate will be reduced by 0.25%, bringing it to a range of 4.25-4.50%.
While this rate cut has largely been priced into the market, the Fed’s monetary statement may carry a hawkish tone. It is anticipated that the Federal Reserve will indicate slower rate cuts in 2025 due to resilient economic conditions and persistent inflation. Crédit Agricole predicts that Jerome Powell, the Fed Chair, will likely hint at pausing rate cuts early in 2025.
Additionally, recent employment and inflation data from November suggest that the Fed is in a position to implement this rate cut.
However, the risks associated with persistent inflation indicate that the rate-cutting cycle will progress more gradually. Crédit Agricole estimates that interest rate projections for 2025 could be revised to 3.625% and for 2026 to 3.125%. These figures represent reductions of 0.75% in 2025 and 0.5% in 2026, showing smaller decreases compared to earlier forecasts.
According to the Financial Times, Israeli negotiators have met with mediators in Doha to discuss a ceasefire with Hamas and the release of hostages from Gaza. These talks are taking place ahead of Donald Trump’s inauguration in January. Both Israeli and U.S. officials remain cautiously optimistic about reaching an agreement, though disagreements over key details persist.
The Israeli negotiating team arrived in Qatar on Monday, focusing on resolving major points of contention. It is expected that both sides will respond to a recent mediator proposal, which includes a six-to-eight-week ceasefire and the release of hostages in exchange for Palestinian prisoners.
These discussions have intensified following Donald Trump’s victory in the U.S. elections. Steven Witkoff, Trump’s envoy to the Middle East, has met with Benjamin Netanyahu and Qatar’s Prime Minister to advance the agreement.
Despite progress, significant challenges remain, including disagreements over the number of hostages to be freed and the presence of Israeli forces in Gaza. While Hamas has softened its stance somewhat, substantial differences still exist.
UBS, in its recent report, has projected that gold prices will reach $2,900 per ounce by the end of 2025. A key factor highlighted by UBS is the continued demand for gold from central banks, driven by the declining value of the dollar and diversification of reserves. UBS expects central bank gold purchases to remain strong throughout 2025, supporting elevated gold prices.
Moreover, investor demand for gold as a hedge against geopolitical and policy uncertainties will play a significant role in maintaining high gold prices. UBS points to ongoing concerns about the Russia-Ukraine conflict, Middle Eastern tensions, and uncertain fiscal and trade policies under the incoming administration of Donald Trump. These factors could boost investment in gold-backed exchange-traded funds (ETFs).
Lower interest rates and a weaker U.S. dollar are additional factors that could drive gold prices higher. UBS predicts that interest rate cuts will continue and the dollar will weaken further, which will bolster demand for gold.
In addition to gold, UBS has identified opportunities in copper and other transition metals. Global investments in power generation, energy storage, and electric transportation are expected to serve as long-term drivers of demand for these metals.
GOLD → Ahead is the Fed and the rate decision. What to do?FX:XAUUSD tested strong support on Tuesday at 2633 before traders moved into a buying phase, hoping a possible rate cut would support their intentions
There is a 93% probability that the Fed may cut interest rates by 0.25%. But the thing to pay attention to here is the general backdrop - the Fed's stance. Hawkish hints about 2025 could have a much bigger impact than a rate cut, which is partially already factored in by the market.
Any hint of fewer rate cuts next year could be a growth driver for the dollar. Powell's comments play an important role in assessing the situation for next year against the backdrop of Trump's policies
Downside risks for gold are quite high due to the controversial situation in favor of the Fed's hawkish stance.
Technically, the emphasis is on the local channel. A price exit beyond 2658 or 2633 will be accompanied by a strong impulse.
Resistance levels: 2658, 2675
Support levels: 2645, 2633, 2620
The situation is very controversial and complicated, that's why several directions relative to the key zones are indicated on the chart.
Everything depends not only on the actual rate numbers, but also on the Fed comments, namely we are interested in the tone and stance for next year. Recommendation - skip trading before the event and wait until volatility decreases to be able to adequately perceive the market position
Regards R. Linda!
XAGUSD- silver, waiting for the correction process to continue?!Silver is below EMA200 and EMA50 in the 4H timeframe and is moving in its descending channel. If the decline continues, we can see the demand zone and buy within that range with the appropriate risk reward. Stabilization of silver above the resistance range will provide us with the way for silver to rise to the supply range.
With the Federal Reserve beginning its interest rate cuts in September and expectations for this trend to continue, markets are now shifting their focus toward determining the neutral rate. The neutral rate refers to the benchmark interest rate in a normal economic cycle that neither accelerates economic growth nor slows it down.
Federal Reserve officials have emphasized that predicting this rate is currently not feasible. They insist that it is necessary to observe how economic data reacts to each stage of rate cuts before making any conclusions about the neutral rate. Nevertheless, bond market fluctuations suggest that this rate may be higher in the current cycle compared to previous ones. On average, FOMC members estimate a long-term neutral rate close to 3%, although this figure remains uncertain.
According to a recent Reuters survey of economists, the yield on 10-year U.S. Treasury bonds is expected to decline to 4.3% within three months and 4.25% within a year. These figures were 4.25% and 4.1% in the November survey, and 3.8% and 3.75% in October.In a note from Citi, it was stated that demand for gold and silver is likely to remain strong until U.S. and global economic growth stabilizes. Additionally, buying these precious metals as a hedge against declining equity values will persist until U.S. interest rates reach the neutral level.
This week, besides the FOMC’s decision on interest rates, other key economic data will be released. These include the GDP report, the Personal Consumption Expenditures (PCE) index, and the latest findings on consumer sentiment.
Bloomberg has reported that Wall Street’s perspective on the U.S. dollar is shifting. Policies introduced by Donald Trump and further rate cuts by the Federal Reserve in the second half of 2025 could weaken the dollar’s strength. Analysts from Morgan Stanley to J.P. Morgan predict that the U.S. dollar will peak by mid-next year before entering a downward trajectory. Similarly, Société Générale has forecasted a 6% decline in the dollar index by the end of 2025.
Bloomberg also noted that Jerome Powell, the Federal Reserve Chair, is expected to announce another quarter-point rate cut. However, the bigger question is what signals the Fed will provide regarding the future policy path and whether this will heighten tensions between Jerome Powell and President-elect Donald Trump.
Following a full percentage point reduction in borrowing costs since mid-September, Powell and his colleagues are expected to pause rate cuts for now. The Federal Reserve is likely to maintain a holding pattern during its January meeting and reassess inflation and labor market conditions in March.
This approach could lead to friction between the FOMC and Trump’s White House. Known for his preference for low rates and frequent complaints when he feels rates are not low enough, Trump’s arrival in office just over a week before the January meeting may amplify these tensions.
DXY Is Going Up! Long!
Please, check our technical outlook for DXY.
Time Frame: 1D
Current Trend: Bullish
Sentiment: Oversold (based on 7-period RSI)
Forecast: Bullish
The market is testing a major horizontal structure 106.958.
Taking into consideration the structure & trend analysis, I believe that the market will reach 109.013 level soon.
P.S
We determine oversold/overbought condition with RSI indicator.
When it drops below 30 - the market is considered to be oversold.
When it bounces above 70 - the market is considered to be overbought.
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dxy drops to $88Gm.
It has taken us a while to get to where we are today, and I’m excited to share an update on the DXY this fine morning as I sip the tastiest coffee in all the lands.
Two years ago, around this time, I called the top on the DXY via:
We have yet to surpass that high, and today I bring you an exciting update. The DXY has officially confirmed the drop that is to come by rejecting a target we've been eyeing for the last quarter of the year.
While there’s always a chance it could go slightly higher, I’ve included one target above the recent rejection.
If my primary theory plays out, the DXY will see a sharp decline below $90 by the end of 2025. This will also coincide with the creation of a "top" in the global liquidity index.