Dxy The 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 - 100.000DXY trades with negative bias for the second straight day, though the downside seems limited. The Fed’s hawkish shift remains supportive of elevated US bond yields and favors the USD bulls. Geopolitical risks and trade war fears might contribute to limiting losses for the safe-haven buck.
Dxyanalysis
Mighty Dollar Eyes Further GainsThe US Dollar Index (DXY) commenced the new year on a strong note, breaking out of its consolidation phase and surging toward the 109.50 level on January 2.
◉ Technical Observations
● The daily candle close on Friday formed an inside bar bearish candle, indicating a potential pullback in the week ahead.
● Immediate support levels are situated between 107.50 and 107.00.
◉ Market Outlook and Key Events
The US jobs report comes out on Friday and will be the main focus for the market this week. A strong jobs report could strengthen the US dollar, affecting emerging markets and commodities.
DeGRAM | DXY testing the resistanceThe DXY is in an ascending channel between the trend lines.
The price is moving from the dynamic resistance.
The chart has formed a harmonic pattern and is now testing the resistance level, but has not yet consolidated above it.
We expect a decline after a successful consolidation under the channel.
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DXY Dollar Index Market Bullish Heist Plan🌟Hi! Hola! Ola! Bonjour! Hallo!🌟
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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 long entry. Our aim is the high-risk Red Zone. Risky level, overbought market, consolidation, trend reversal, trap at the level where traders and bearish robbers are stronger. 👀 So Be Careful, wealthy and safe trade.💪🏆🎉
Entry 📈 : You can enter a Bull trade at any point after the Breakout.
however I advise placing Buy 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 🛑: Using the 4H period, the recent / nearest low or high level.
Goal 🎯: 110.500
Scalpers, take note : only scalp on the Long 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 💰.
Based on the fundamental analysis, I would conclude that the DXY (US Dollar Index) is: Bearish
Reasons:
Interest rate differential: The Federal Reserve's (Fed) interest rate (4.50%) is high compared to other major economies, but the rate hike cycle is expected to slow down, which could lead to a decline in the DXY.
Economic growth: The US GDP growth (2.1%) is slowing down, and the economy is facing headwinds from trade tensions and global economic uncertainty, which could lead to a decline in the DXY.
Trade balance: The US trade deficit (USD 50 billion) is large and growing, which could put downward pressure on the DXY.
Fiscal policy: The US fiscal policy is becoming increasingly expansionary, which could lead to a decline in the DXY.
However, it's essential to consider the following risks:
Global economic slowdown: A slowdown in global economic growth, particularly in China and Europe, could lead to a flight to safety and support the DXY.
Geopolitical tensions: Escalating geopolitical tensions, particularly in the Middle East and North Korea, could lead to a flight to safety and support the DXY.
Fed's monetary policy: The Fed's dovish stance and potential interest rate cuts could support the DXY.
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.
Take advantage of the target and get away 🎯 Swing Traders Please reserve the half amount of money and watch for the next dynamic level or order block breakout. Once it is resolved, we can go on to the next new target in our heist plan.
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.
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DeGRAM | DXY pullback from 50% retracement levelThe DXY is in an ascending channel between the trend lines.
The price is moving from the upper boundary of the channel and dynamic resistance.
The chart is holding under the 50% retracement level.
We expect a decline to the lower boundary of the channel.
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DeGRAM | DXY movement in the rangeThe DXY is in an ascending channel between the trend lines.
The chart has formed a harmonic pattern.
The price seeks to reach the lower boundary of the channel.
We expect a decline after consolidation under the support level.
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DXY at a Critical Juncture: Will Bulls Break the Resistance?The US Dollar Index (DXY) is currently consolidating just above the ascending trendline while approaching a critical horizontal resistance zone around 108.00.
The price action shows a contracting triangle pattern, suggesting indecision in the market. A breakout above the resistance could confirm bullish momentum, potentially driving the index toward 109.50 or higher. Conversely, a breakdown below the ascending trendline and support zone could indicate bearish pressure, targeting the next key level at 106.50.
DXY UP active zone The US Dollar trades flat and is unphased by headlines out of China about ramping up bond sales next year. Chinese policymakers plan to sell a record 3 trillion yuan of special treasury bonds in 2025, the highest on record. The US Dollar Index (DXY) resides above 108.00, very close to eke out a fresh two-year high.
The 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).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
The Relationship Between Dollar Dominance, Debt, and Deficits
The US dollar's position as the world's reserve currency grants the United States a unique set of economic advantages and challenges. This "exorbitant privilege," as it's often called, significantly influences the nation's ability to manage its debt and deficits. Understanding this complex relationship is crucial for comprehending the dynamics of the global financial system and the US economy's position within it.
Dollar Dominance: A Foundation of Economic Power
The dollar's status as the primary reserve currency means that it is widely held by central banks, international institutions, and businesses worldwide. This widespread acceptance creates consistent demand for dollar-denominated assets, particularly US Treasury bonds. This demand is a key factor in allowing the US government to finance its debt at relatively low-interest rates. If the US were to borrow in another currency, or if global demand for its debt were significantly lower, the cost of borrowing would likely increase, making it more expensive to finance government spending.
This dominance also simplifies international trade for US businesses. Because the dollar is the standard currency for many global transactions, US companies can conduct business with reduced exchange rate risks and transaction costs. This ease of trade strengthens the US position in the global economy and contributes to its overall economic power.
Debt and Deficits: The Fiscal Realities
Government debt represents the accumulation of past budget deficits. A budget deficit occurs when government spending exceeds its revenue in a given fiscal year. These deficits require the government to borrow money, primarily by issuing Treasury bonds, which then contribute to the overall national debt.
While deficits can be used strategically to stimulate the economy during downturns or to fund essential public services, persistent and large deficits can lead to a growing national debt. A high debt level can have several potential consequences, including higher interest payments on the debt, reduced fiscal flexibility to respond to future economic crises, and potential inflationary pressures.
The Interplay: Dollar Dominance and Fiscal Policy
The relationship between dollar dominance, debt, and deficits is complex and multifaceted. The ability to borrow at lower costs due to the dollar's reserve currency status can, in some ways, lessen the immediate pressure to address budget imbalances. The lower interest rates make it less painful in the short term to finance deficits, potentially leading to a greater accumulation of debt over time.
However, it's crucial to understand that dollar dominance does not directly cause deficits. Deficits are a result of fiscal policy decisions—specifically, decisions about government spending and taxation. Dollar dominance merely affects the cost of financing those decisions. A government could run deficits regardless of its currency's global status, but the financial implications would likely be significantly different.
One could argue that the "exorbitant privilege" afforded by dollar dominance creates a moral hazard. Knowing that borrowing costs are relatively low could incentivize policymakers to engage in more expansive fiscal policies than they might otherwise pursue. This can lead to a situation where the long-term consequences of debt accumulation are downplayed in favor of short-term political or economic gains.
Potential Challenges to Dollar Dominance
While the dollar has maintained its dominant position for decades, several factors could potentially challenge its future status. The rise of other economic powers, the development of alternative reserve currencies, and shifts in global trade patterns are all potential threats.
For example, the increasing economic influence of countries like China has led to discussions about the potential for the renminbi to become a more prominent player in the global financial system. However, for a currency to achieve reserve status, it requires deep and liquid financial markets, strong institutions, and widespread trust in the issuing country's economic and political stability. These are factors that have contributed to the dollar's strength and are not easily replicated.
Furthermore, the emergence of new technologies, such as cryptocurrencies and digital payment systems, could potentially disrupt traditional financial flows and challenge the existing currency hierarchy. However, these technologies are still relatively new and face regulatory and adoption hurdles before they could pose a significant threat to the dollar's dominance.
Maintaining the Dollar's Strength
Maintaining the dollar's strength and its reserve currency status is a complex undertaking. It requires a combination of sound economic policies, strong institutions, and a commitment to maintaining open and transparent financial markets.
Sustainable fiscal policies are essential. While dollar dominance provides some flexibility, persistently large deficits and a rapidly growing national debt could eventually erode confidence in the dollar and its long-term value. This could lead to a decrease in demand for dollar-denominated assets, potentially increasing borrowing costs and weakening the dollar's global position.
In conclusion, the relationship between dollar dominance, debt, and deficits is a critical aspect of the US and global economies. While the dollar's reserve currency status provides significant advantages in financing government spending and facilitating international trade, it also presents challenges in managing fiscal policy. Maintaining the dollar's strength requires a balanced approach that prioritizes sound economic management and recognizes the complex interplay between these crucial economic factors.
DXY "Dollar Index market" Bullish Heist Plan🌟Hi! Hola! Ola! Bonjour! Hallo!🌟
Dear Money Makers & Robbers, 🤑 💰
Based on 🔥Thief Trading style technical 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 long entry. Our aim is the high-risk Red Zone. Risky level, overbought market, consolidation, trend reversal, trap at the level where traders and bearish robbers are stronger. 👀 So Be Careful, wealthy and safe trade.💪🏆🎉
Entry 📈 : You can enter a bull trade at any point,
however I advise placing Multiple Buy limit orders within a 15 or 30 minute timeframe. Entry from the most recent or closest low & high level should be in retest.
Stop Loss 🛑: Using the 4H period, the recent / nearest low level.
Goal 🎯: 109.500
Scalpers, take note : only scalp on the Long 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 💰.
Warning⚠️ : Our heist strategy is incompatible with Fundamental Analysis news 📰 🗞️. We'll wreck our plan by smashing the Stop Loss 🚫🚏. Avoid entering the market right after the news release.
Take advantage of the target and get away 🎯 Swing Traders Please reserve the half amount of money and watch for the next dynamic level or order block breakout. Once it is resolved, we can go on to the next new target in our heist plan.
💖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 🫂
DXY: USD is likely to continue dominate the market! Dear Traders,
DXY has been in news ever since US Election results came out in the market. We expect price to reverse after making small correction, once the correction has been made we can correlate dxy and trade dxy pairs. Good luck and trade safe!
two buy positions on the DXY (U.S. DOLLAR INDEX)Here’s a structured plan for managing two buy positions on the DXY:
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1. Entry Plan
First Buy Position:
Entry: 107.000
Likely Reason: Anticipation of strong support at this level, possibly near a significant technical or psychological level.
Second Buy Position:
Entry: 107.830
Likely Reason: Market reversal or breakout confirmation at this higher level.
TVC:DXY
2. Risk Management
Stop-Loss Levels:
For the 107.000 position: Below 106.800 (to avoid a deeper pullback).
For the 107.830 position: Below 107.500 (to account for short-term fluctuations).
Position Sizing: Use smaller lot sizes for the second position if risk increases near resistance zones.
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3. Take-Profit Strategy
Conservative Targets:
For both positions, a short-term take-profit can be set at 108.200, which may align with minor resistance.
Aggressive Targets:
Extend profit-taking to 108.500 or 109.000, depending on momentum and fundamental triggers.
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4. Monitoring Key Levels
Support Zones:
Strong support at 107.000: Look for price consolidation here if it drops further.
Resistance Zones:
108.000–108.200: Watch for profit-taking or reversal at these levels.
109.000: A more aggressive upside target.
DeGRAM | DXY pullback from resistanceThe DXY is in an ascending channel between the trend lines.
The price has fallen under the resistance level, which previously acted as a pullback point.
The chart has formed a harmonic pattern.
We expect a pullback in the index.
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Share your opinion in the comments and support the idea with like. Thanks for your support!