Dollar Index at Risk: Key Support Holds the Fate of the TrendThe U.S. Dollar Index (DXY) has broken down from a Head & Shoulders pattern, confirming a bearish reversal after a successful retest of the neckline. The price is currently near a key support area, and if it fails to hold, a drop toward the lower strong support zone is likely.
Additionally, RSI is showing bearish divergence and is below the neutral 50 level, indicating weakening momentum.
DYOR, NFA
Dxyanalysis
DXY weekly Perspective 23.02.25DXY Analysis & Bias for This Week
My outlook for the Dollar Index (DXY) remains bearish, which aligns with my bias for bullish moves on pairs like GU, EU, and Gold. Since price has already broken structure to the downside, I anticipate a retracement to mitigate the newly formed 14-hour supply zone before continuing lower.
While price may react bullishly from the 3-hour or 2-hour demand zones I’ve marked, the overall momentum still favors the downside, as seen from the strength of recent bearish candlesticks.
Plan of Action:
📌 Once price reaches the 14-hour supply zone, I will wait for lower timeframe confirmations before taking action.
📌 I will also check for any corresponding demand zones on my other pairs to ensure alignment across the board.
DXY on high time frame
"Hello traders, focusing on DXY on high time frames, as per my previous analysis, the price has shifted towards a bearish direction. The price has reached the 110 zone, and candle formations are indicating a downtrend. I anticipate further pullback towards the 108 zone and potentially lower prices thereafter."
If you have any specific questions or need further assistance with your message, feel free to let me know!
Dollar idex is ready to drop next week are you ready ?This week, the market was slow with little movement. However, starting next week, keep an eye on the dollar. The order flow is showing a strong sell, and the daily chart reveals an FVG that indicates a sell from this level. Additionally, the current low aligns with the monthly FVG level. Trading next week should be exciting!
U.S. Dollar Index (DXY) Technical Analysis1. Long-Term Uptrend & Ascending Channel
The DXY has been respecting a well-established ascending channel for over two decades, with price action bouncing between the upper and lower trendlines. This suggests a macro bullish structure, despite periodic corrections.
2. Wave Structure for Clarity
The green waves highlight significant price swings within the trend.
These waves illustrate market cycles of expansion and correction, showing how DXY has moved through phases of strength and retracement.
The current movement suggests a similar pattern is playing out, with a likely correction before the next potential leg higher.
3. Key Price Levels
Resistance at ~113.07: A major historical level where the index has faced selling pressure.
Support Zone (~100-102): The blue area represents a critical support region that has acted as a demand zone in previous corrections.
Lower Trendline (~98): If selling pressure continues, the lower boundary of the channel (~98) could act as the final line of support before a potential reversal.
4. Potential Market Scenario
The price has recently rejected the upper region and is heading toward support.
If the 102-100 range holds, a bounce toward the upper trendline (~113) is likely.
If broken, the next target would be the lower channel support (~98) before a possible long-term recovery.
Short swing trade set up developingI can see a good short trade opportunity developing.
1)The price sharply dropped below the major support/resistance zone around 107 area and retraced up gently within the ascending parallel channel to fill the fair value gap.
2)The current 4H candle is moving below the bottom parallel channel. (developing)
3) MACD is in the bear zone and it looks like it is about to cross to the downside (but not confirmed).
4) RSI is also in the bear zone and it is starting to cross to the downside.
DeGRAM | DXY retest of supportDXY is in a descending channel between trend lines.
The price is retesting the support level, which previously acted as a rebound point.
The chart keeps the descending structure.
We expect a correction in the channel after fixing above the important psychological level of 107.
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Scenario on DXY 13.2.2025I would see the dollar index like this if I was considering going short I would first consider going above the monthly level of 108.048 if the market continued then I have one more SFP at a price around 108.6 if I was going to talk about a long position then first around the monthly level of 107.053 then the next one below the daily level of 106.724.
DeGRAM | DXY retest of the trend lineDXY is in a descending channel between trend lines.
The price is moving from the lower boundary of the channel and has already reached the dynamic support, which has previously acted as a rebound point twice.
The chart dropped below the 62% retracement level and afterwards formed a harmonic pattern and even though the descending structure has been maintained, the index has not yet formed a descending bottom.
We expect that after consolidation above 107.760 DXY may rise in the channel to the nearest resistance at 108.540.
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DeGRAM | DXY growth in the channelThe DXY is in an ascending channel between the trend lines.
The price is moving from the lower boundary of the channel and dynamic support, which has already acted as a rebound point twice.
The chart has formed a harmonic pattern.
The index will continue to grow after consolidation above the 62% retracement level.
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DXY Dollar Index Market Bearish Heist Plan (Day/Swing Trade)🌟Hi! Hola! Ola! Bonjour! Hallo!🌟
Dear Money Makers & Robbers, 🤑 💰🐱👤🐱🏍
Based on 🔥Thief Trading style technical and fundamental analysis🔥, here is our master plan to heist the DXY Dollar Index Market. Please adhere to the strategy I've outlined in the chart, which emphasizes short entry. Our aim is the high-risk Green Zone. Risky level, oversold market, consolidation, trend reversal, trap at the level where traders and bullish thieves are getting stronger. 🏆💸Book Profits Be wealthy and safe trade.💪🏆🎉
Entry 📈 : "The vault is wide open! Swipe the Bearish loot at any price - the heist is on!
however I advise to Place Sell limit orders within a 15 or 30 minute timeframe. Entry from the most recent or closest low or high level should be in retest.
Stop Loss 🛑: Thief SL placed at 108.500 (swing Trade Basis) Using the 4H period, the recent / swing high or low level.
SL is based on your risk of the trade, lot size and how many multiple orders you have to take.
Target 🎯: 105.500 (or) Escape Before the Target
🧲Scalpers, take note 👀 : only scalp on the Short side. If you have a lot of money, you can go straight away; if not, you can join swing traders and carry out the robbery plan. Use trailing SL to safeguard your money 💰.
📰🗞️Fundamental, Macro, COT, Sentimental Outlook:
DXY Dollar Index Market is currently experiencing a Bearish trend., driven by several key factors.
💠Fundamental Analysis
Weakening US Economy: The US economy's growth is slowing down, which could lead to a decline in the dollar's value.
Falling Interest Rates: The US Federal Reserve's decision to cut interest rates could weaken the dollar.
💠Macroeconomic Analysis
The US economy's growth, inflation rates, and employment numbers influence the dollar's strength.
Global economic trends, such as trade tensions and geopolitical events, also impact the dollar's value.
💠COT Data Analysis
Net Short Positions: Institutional traders and large banks have increased their net short positions in the DXY Dollar Index, indicating a bearish sentiment.
COT Ratio: The COT ratio has fallen to 1.2, indicating a bearish trend.
💠Market Sentimental Analysis
Bearish Sentiment: 55% of client accounts are short on this market, indicating a bearish sentiment.
Option Skew: The 25-delta put option skew has increased to 15, indicating a bearish sentiment.
💠Positioning Data Analysis
Institutional Traders: Institutional traders and large banks are positioning themselves for a bearish trend, with some predicting a decline to 105.50.
Corporate Traders: Corporate traders are also monitoring the index's performance, considering factors like interest rates and global economic trends.
💠Overall Outlook
Bearish Trend: The DXY Dollar Index is experiencing a bearish trend, with a potential decline to 105.50.
Key Support Levels: 106.57, 105.50.
💠Technical Analysis
Moving Averages: The 50-day MA is indicating a bearish trend.
Relative Strength Index (RSI): The RSI has fallen to 40, indicating oversold conditions.
Bollinger Bands: The lower band breakout indicates a bearish trend.
⚠️Trading Alert : News Releases and Position Management 📰 🗞️ 🚫🚏
As a reminder, news releases can have a significant impact on market prices and volatility. To minimize potential losses and protect your running positions,
we recommend the following:
Avoid taking new trades during news releases
Use trailing stop-loss orders to protect your running positions and lock in profits
📌Please note that this is a general analysis and not personalized investment advice. It's essential to consider your own risk tolerance and market analysis before making any investment decisions.
📌Keep in mind that these factors can change rapidly, and it's essential to stay up-to-date with market developments and adjust your analysis accordingly.
💖Supporting our robbery plan will enable us to effortlessly make and steal money 💰💵 Tell your friends, Colleagues and family to follow, like, and share. Boost the strength of our robbery team. Every day in this market make money with ease by using the Thief Trading Style.🏆💪🤝❤️🎉🚀
I'll see you soon with another heist plan, so stay tuned 🤑🐱👤🤗🤩
ABC Correction perfection A Beautiful ABC pattern
Lines up perfectly with :
- Previous range Point Of Control
- Previous month Value Area Low
- A Daily Naked
- The 1 to 1
- Global Swing Low Avwap
Elliot wave theory
I expect early next week being hit. Then target the highs for a wyckoff distribution pattern.
People are already positioning EU swing longs, without a spring.
We need to punish dem early bulls 🏌️♀️
CAPITALCOM:DXY OANDA:EURUSD CME:6E1! ICEUS:DX1!
#DXY 1DAYDXY (1D Timeframe) Analysis
Market Structure:
The price has broken below the uptrend support, signaling a potential shift from bullish to bearish momentum. This breakdown indicates that buyers were unable to sustain the upward trend, leading to increased selling pressure. Additionally, a sell engulfing candlestick has formed, further confirming bearish sentiment.
Forecast:
A sell opportunity is expected as the breakdown of uptrend support and the sell engulfing pattern suggest further downside movement.
Key Levels to Watch:
- Entry Zone: After a confirmed breakdown and possible retest of the broken support as resistance.
- Risk Management:
- Stop Loss: Placed above the broken support or recent swing high.
- Take Profit: Target lower support zones for potential downside movement.
Market Sentiment:
The combination of the uptrend support breakdown and a sell engulfing pattern indicates that bearish momentum is increasing. Waiting for confirmation of continued selling pressure will help align with the prevailing market trend.
DXY Weekly BiasMy bias for this index is bearish considering that we retested and confirmed the Weekly Bearish Order Block at 109.65.
I do anticipate that the index might be attracted towards Sellside Liquidity at 107.27, 106.95 ,and 105.4.
Our daily setup will further give us the best entry and stop loss.
DXY (Dollar index) short from 108.800My DXY analysis aligns with the expectation of a bearish move, which suggests that my pairs—EU and GU—could push higher. However, before that, we may see a minor pullback as price moves toward a demand zone.
Price has recently broken structure to the upside, leaving behind a fresh demand level. Once price reaches this area, I anticipate accumulation before a potential move upward. I will look for opportunities to capitalize on this movement across the pairs I trade, such as Gold, EU, and GU.
The price action has been very clean so far, which is promising, and we can expect more of the same as we move further into Q1.
Have a great week ahead and remain vigilant!
Surging Dollar Spurs Jump in Corporate FX HedgingThe relentless rise of the U.S. dollar is sending ripples of concern through the global economy, and businesses are taking notice. Faced with a strengthening greenback, corporations are increasingly turning to foreign exchange (FX) hedging strategies to mitigate the impact of currency fluctuations on their bottom lines. This surge in hedging activity reflects a growing awareness of the risks associated with currency volatility and a proactive approach to protecting profits in an increasingly uncertain global landscape.
The Dollar's Dominance
The U.S. dollar has been on a tear, appreciating significantly against a basket of other major currencies. This surge is driven by a confluence of factors, including the Federal Reserve's hawkish monetary policy, safe-haven demand amid geopolitical tensions, and the relative strength of the U.S. economy. While a strong dollar can have some benefits, such as lower import costs, it also poses significant challenges for multinational corporations.1
Impact on Corporate Earnings
For companies that generate revenue in foreign currencies but report earnings in U.S. dollars, a strong dollar can create a significant headwind. When foreign revenues are converted back into dollars, they are worth less than they were before the dollar's appreciation. This can lead to lower reported earnings, even if the company's underlying business performance remains strong. Conversely, companies that import goods priced in dollars but sell them in other currencies see their profit margins squeezed as their input costs rise.
The Hedging Imperative
In this environment of heightened currency risk, FX hedging has become a crucial tool for corporations.2 Hedging involves using financial instruments, such as forward contracts, options, or swaps, to lock in exchange rates for future transactions.3 This allows companies to insulate themselves from adverse currency movements and provides greater certainty about their future cash flows and earnings.4
Surge in Hedging Activity
Market data suggests a significant uptick in corporate FX hedging activity. Treasurers and finance departments are increasingly prioritizing currency risk management, recognizing that even small fluctuations in exchange rates can have a material impact on their financial results. This increased focus on hedging is driven by several factors:
• Heightened Volatility: The dollar's rapid appreciation has created significant volatility in currency markets, making it more difficult for companies to predict future exchange rates. This uncertainty underscores the need for hedging strategies to protect against unexpected currency swings.
• Earnings Protection: As mentioned earlier, a strong dollar can erode corporate earnings. Hedging allows companies to mitigate this risk and ensure that their financial performance is not unduly impacted by currency fluctuations.5
• Strategic Planning: Hedging provides greater predictability in cash flows, which is essential for strategic planning and investment decisions.6 By locking in exchange rates, companies can make more informed decisions about future investments and expansion plans.7
• Shareholder Expectations: Investors are increasingly scrutinizing companies' currency risk management practices. Companies that proactively hedge against currency risks are often seen as more prudent and better managed, which can be a positive factor for investor confidence.
Types of Hedging Strategies
Companies employ a variety of hedging strategies depending on their specific needs and risk tolerance.8 Some common approaches include:
• Forward Contracts: These contracts obligate a company to buy or sell a specific amount of currency at a predetermined exchange rate on a future date.9 This is a straightforward way to lock in exchange rates for future transactions.
• Options: Currency options give a company the right, but not the obligation, to buy or sell currency at a specific price on or before a certain date.10 Options provide flexibility and allow companies to benefit from favorable currency movements while limiting their downside risk.11
• Currency Swaps: These agreements involve exchanging principal and/or interest payments in one currency for those in another currency.12 Swaps can be used to manage currency risk associated with long-term debt or investments.13
Challenges and Considerations
While hedging can be an effective way to manage currency risk, it's not without its challenges. Hedging strategies can be complex and require specialized expertise. Furthermore, hedging involves costs, such as premiums paid for options or fees for forward contracts.14 Companies need to carefully weigh the costs and benefits of hedging and choose strategies that are appropriate for their specific circumstances.
Looking Ahead
The strong dollar is likely to remain a significant factor in the global economy for the foreseeable future. As such, corporate FX hedging is expected to remain a priority for multinational companies. Companies that proactively manage their currency risk are better positioned to navigate the challenges of a strong dollar environment and protect their earnings from adverse currency movements.15 The current surge in hedging activity reflects a growing recognition of this reality and a proactive approach to mitigating currency risk in an increasingly interconnected world. As global economic conditions evolve, companies will need to remain vigilant and adapt their hedging strategies accordingly to ensure they are adequately protected from currency volatility.
DeGRAM | DXY downturn in the channelThe DXY is in an ascending channel between the trend lines.
The price is moving from the dynamic resistance, which previously acted as a pullback point.
The chart has formed a harmonic pattern.
We expect the continuation of the decline in the channel.
-------------------
Share your opinion in the comments and support the idea with like. Thanks for your support!
DXY US Dollar Index Market Bearish Heist Plan🌟Hi! Hola! Ola! Bonjour! Hallo!🌟
Dear Money Makers & Robbers, 🤑 💰🐱👤
Based on 🔥Thief Trading style technical and fundamental analysis🔥, here is our master plan to heist the DXY US Dollar Index Market. Please adhere to the strategy I've outlined in the chart, which emphasizes short entry. Our aim is the high-risk Green Zone. Risky level, oversold market, consolidation, trend reversal, trap at the level where traders and bullish robbers are stronger. 🏆💸Be wealthy and safe trade.💪🏆🎉
Entry 📈 : "The vault is wide open! Swipe the Bullish loot at any price - the heist is on!
however I advise placing Sell limit orders within a 15 or 30 minute timeframe. Entry from the most recent or closest high or low level should be in retest.
Stop Loss 🛑: Thief SL placed at 108.500 (swing Trade) Using the 2H period, the recent / nearest low or high level.
SL is based on your risk of the trade, lot size and how many multiple orders you have to take.
Target 🎯: 106.000 (or) Escape Before the Target
Scalpers, take note 👀 : only scalp on the Short side. If you have a lot of money, you can go straight away; if not, you can join swing traders and carry out the robbery plan. Use trailing SL to safeguard your money 💰.
📰🗞️Fundamental, Macro, COT, Sentimental Outlook:
DXY US Dollar Index Market is currently experiencing a Bearish trend., driven by several key factors.
🟦Fundamental Analysis:
- The US Dollar Index (DXY) has been under pressure due to the contraction in JOLTS job openings, indicating a tightening job market
- The Federal Reserve's monetary policies, geopolitical stability, and global acceptance of the dollar as a reserve currency contribute to the dollar's strength
- A strong economy with high productivity, low unemployment, and stable inflation provides a foundation for strengthening the dollar's position
🟫Macro Analysis:
- The US economy is expected to remain strong, with low unemployment and stable inflation, supporting the dollar's value
- Global trade tensions and geopolitical instability may impact the dollar's value, but its status as a reserve currency provides stability
- Interest rate decisions by the Federal Reserve will influence the dollar's value, with potential rate cuts impacting its strength
🟪Sentimental Analysis:
- 60% of client accounts on IG are long on the US Dollar Index, indicating a bullish sentiment
- However, the recent contraction in JOLTS job openings and potential Fed rate cuts may lead to a bearish sentiment
🟧COT Analysis:
- The latest Commitment of Traders (COT) report shows that speculators are net long on the US Dollar Index, indicating a bullish sentiment
- However, the report also shows that commercial traders are net short, indicating a potential bearish sentiment
🟨Positioning:
- Corporate traders may consider hedging their exposure to the US Dollar Index due to potential volatility
- Investor and hedge fund traders may consider going long on the US Dollar Index due to its potential strength, but should be cautious of potential rate cuts and geopolitical instability
- Institutional traders may consider diversifying their portfolios to minimize exposure to the US Dollar Index
- Retail traders should exercise caution when trading the US Dollar Index due to its potential volatility and should consider using proper risk management strategies
⚠️Trading Alert : News Releases and Position Management 📰 🗞️ 🚫🚏
As a reminder, news releases can have a significant impact on market prices and volatility. To minimize potential losses and protect your running positions,
we recommend the following:
Avoid taking new trades during news releases
Use trailing stop-loss orders to protect your running positions and lock in profits
📌Please note that this is a general analysis and not personalized investment advice. It's essential to consider your own risk tolerance and market analysis before making any investment decisions.
📌Keep in mind that these factors can change rapidly, and it's essential to stay up-to-date with market developments and adjust your analysis accordingly.
💖Supporting our robbery plan will enable us to effortlessly make and steal money 💰💵 Tell your friends, Colleagues and family to follow, like, and share. Boost the strength of our robbery team. Every day in this market make money with ease by using the Thief Trading Style.🏆💪🤝❤️🎉🚀
I'll see you soon with another heist plan, so stay tuned 🤑🐱👤🤗🤩