Dollar Index-Stops At Gap ResistanceAfter just a temporary setback in stocks and a brief move higher in the dollar earlier this week, we’re once again seeing a strong reversal across the board. This comes after Donald Trump extended the July 9th tariff deadline to August 1st, giving more time for trade negotiations with various countries. That brought some optimism back into the markets, and if stocks continue to gain, the dollar index is likely to remain in its downtrend.
In fact, the dollar index stopped right at the June 26th gap near the 97.70 resistance level. We believe that the corrective price action from July 1st could now be coming to an end, and the market may resume lower—especially if we get a breakout below the corrective channel support near 97.
GH
DXY trade ideas
DOLLAREXACTLY AS FORECASTED FROM MY WEEKLY DOLLAR CHART,ON STRONG NON-FARM DATA DOLLAR RISE TO KEEP GOING HIGER,GOLD SELL,AUDUSD SELL ,EURUSD SELL GBPUSD SELL.
Average Hourly Earnings m/m
0.3% 0.4% —
Non-Farm Employment Change
147K 111K 139K
Unemployment Rate
4.1% 4.3% 4.2%
Unemployment Claims
233K 240K 236K
Interpretation and Implications
Average Hourly Earnings m/m:
Rose by 0.3%, slightly below the forecast of 0.4%. This suggests wage growth is steady but not accelerating, which may ease some inflation concerns.
Non-Farm Employment Change:
The US economy added 147,000 jobs, beating both the forecast (111K) and the previous month (139K). This indicates continued, though moderate, labor market expansion.
Unemployment Rate:
Fell to 4.1%, better than the expected 4.3% and down from 4.2% previously. This points to a modest improvement in labor market conditions.
Unemployment Claims:
Dropped to 233,000, lower than both the forecast (240K) and last month (236K). This signals fewer new layoffs and continued resilience in the job market.
Market Impact
Dollar (USD):
The combination of stronger-than-expected job growth and a lower unemployment rate is generally supportive for the US dollar, as it suggests the labor market remains robust. However, slightly softer wage growth may temper expectations for aggressive Fed tightening going forward.
Federal Reserve Outlook:
These figures reinforce the Fed’s “data-dependent” stance. Solid job creation and falling unemployment reduce urgency for immediate rate cuts, but the lack of wage acceleration may allow the Fed to maintain a cautious approach.
In summary:
The US labor market in July 2025 shows moderate strength, with job gains and a falling unemployment rate, while wage growth remains steady but not excessive. This mix supports a stable outlook for the dollar and gives the Fed flexibility in its upcoming policy decisions.
FOLLOW THE TREND The DXY is showing signs of a momentum shift, transitioning into a bullish recoup as Q2 progresses. This shift may signal a change in broader market sentiment, with the dollar seeking strength amidst evolving macroeconomic conditions. Traders should watch for confirmation at key structural levels. follow for more insights , so you can make informed decisions ,comment for opinions , and boost idea
Dollar Index Analysis – Trump, Hegemony & a Dangerous Disconnect🇺🇸💣 Dollar Index Analysis – Trump, Hegemony & a Dangerous Disconnect 📉⚠️
Hey Traders,
FXPROFESSOR here with a deep-dive update on the Dollar Index (DXY) – and this one hits both technicals and macro geopolitics.
🧠 Macro Context:
For decades, the U.S. strategically outsourced much of its basic manufacturing capacity to China—everything from screws, cables, plastics, and circuit boards. This freed America to focus on high-margin sectors like technology, finance, and defense innovation.
But this efficiency came at a cost: dependency. You can't be the military and economic hegemon of the world if you don’t manufacture your own basic components. That’s the foundation of hard power—and Trump understands this well.
🔁 Now Trump is trying to reverse that.
He knows America can’t win long-term without reclaiming production and export competitiveness – and a strong dollar kills that dream.
So what’s the play?
✅ Trump brings the volatility
✅ Fed stays cautious
✅ Dollar weakens... but without actual rate cuts
That’s the scary part 👇
📉 💵 Dollar Strength vs. Treasury Stress
This is also why the U.S. Treasury market is under stress. If the U.S. wants to rebuild domestic production, reduce trade deficits, and support massive fiscal spending, it needs to weaken the dollar and attract internal capital—not depend on foreign buyers of debt.
A strong dollar = trade imbalance, hollowed industry, and rising debt service costs.
A normalized dollar = controlled exports, internal manufacturing, and a potential realignment of global capital flows.
📉 The Chart: "The Year of the Normalized Dollar"
🟡 This is a continuation of the same chart I published over a year ago.
Key Rejection Zone: 100.965 (former support, now resistance)
Current Trajectory: Approaching my long-held target at 94.677
Macro Message: The dollar is dropping without a Fed pivot
Worrying Signal: If we hit major support while the Fed stays tight... the entire market may need to reprice expectations. That could shake equities and crypto alike.
🧊 This is not a clean-cut dollar short anymore . It’s already priced in, and that’s why I’m spooked.
🧭 What I’m Watching:
Will Trump’s trade war accelerate this move?
Will Powell finally cut in September—or double down?
Will the support at 94.5 hold, or break and open a much larger macro shift?
This chart is no longer just technical. It’s political. It’s strategic. It’s a chessboard for hegemony.
🎥 FULL 20-min video breakdown is now live!
I cover DXY, Bitcoin, tech stocks, gold, silver, DAX, BTC.D and much more
Watch it if you want the full map of what I’m thinking this week.
One Love,
The FXPROFESSOR 💙
Disclosure: I am happy to be part of the Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis. Awesome broker, where the trader really comes first! 🌟🤝📈
We can expect such a move if the event I mentioned in the captioHello friends..
In the analysis we had previously told you about the dollar index on this page, it started a downward trend right from the specified area (you can visit the page)
Now, after a long time has passed since that analysis, we are now in a suitable range in the dollar index.
See, on the weekly time frame, the index number has hit a strong support area, but we should not make a trading decision by seeing this support unit.
As you can see in the image, if the index number suffers in this range, we can expect a turn in the index.
You can change the trading decisions you have had so far in the event of a turn in the index.
This is just a view from our team, do not attach it to your trades.
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Follow our page to see more analyses.
DOLLAR INDEX TRADING CHEACK LIST.
The dxy is the measure of the united state dollar relative to basket of six majors foreign currencies, it was originally developed by U.S Federal Reserve in 1973 to provide a trade -weighted average value of the dollar against global currencies.
the six currencies are EURO 57%,JPY 13.6%,GBP 11.9%,CAD 9.1% SEK 4.2% CHF 3.6%
The index rises when the dollar strengthens against these currencies and falls when it weakens ,its used to gauge the overall strength of the us dollar in the global market.
US10Y
THE US10Y ,the treasury note yield is the interest rate the U.S government pays to borrow money for 10 years ,it serves as a crucial benchmark for other interest rates and is a key indicator of the investor sentiment about the economy, in context it reflects the return an investor expect for lending money to the U.S. government for a decade .
the interest is paid semi annually at a fixed coupon rate and the yield moves inversely to bond price; when bond price fall the yield rises, and vice versa .
this have a direct effect on borrowing cost across the economy ,including mortgage rates and corporate loans .
when yield is rising investor optimism is high about the economic growth and inflation ,while failing yield indicates economic caution and recession fear and concern
technical interpretation of the monthly chart
the dxy is in buy back position on ascending trendline line ,but price remains below supply roof and if we get monthly retest of broken demand floor we could see price selling off.
trading is 100% probability.
DXY (Dollar Index) longs to shortsThe dollar has been bearish for several weeks, but we’re now starting to see signs of a potential retracement due to price being in oversold territory. Last week, DXY reacted from a key weekly demand level, suggesting that we could see some short-term bullish movement before any continuation to the downside.
I’ll be watching closely for price to either push higher into liquidity or retrace slightly deeper into more discounted demand zones for a cleaner long setup. This would also align with my short setups across other major pairs, making DXY strength a key narrative this week.
Confluences for DXY Longs:
DXY has been bearish for an extended period — now showing signs of accumulation on higher timeframes
Price may retrace upwards to collect liquidity before continuing its macro downtrend
Recently reacted from a major weekly demand zone
Imbalances and liquidity above, including Asia highs, remain untapped
P.S. If price fails to react from any of my current POIs, I’ll patiently wait for new zones to develop and adjust accordingly — always staying aligned with what price tells us.
Let’s stay sharp and crush the week ahead!
DXY Potential Bullish Reversal – Target 99.456 DXY Potential Bullish Reversal – Target 99.456 🎯
Technical Analysis Overview:
🔹 Trend Structure:
The chart illustrates a recent downtrend, which has been broken as price moved above the descending trendline, signaling a potential trend reversal.
🔹 Pattern Insight:
A bullish harmonic pattern is visible (possibly a bullish Bat or Gartley), with the price reacting from the PRZ (Potential Reversal Zone), aligning with key support near 96.500. The market has respected this zone multiple times, evident from the orange highlighted circles showing price rejections.
🔹 Support & Resistance:
Support Zone: ~96.500
Breakout Zone: ~96.985 (current consolidation near this resistance)
Target Zone: Marked at 99.456, which aligns with previous structure and fib projection.
🔹 Market Sentiment:
Price is consolidating after breaking the downtrend, forming a bullish rectangle (accumulation). The green arrows indicate bullish intent from buyers defending support levels.
🔹 Price Action Signal:
Formation of higher lows.
Break of structure and close above previous highs.
Possible breakout pending above consolidation box.
📊 Conclusion:
DXY shows bullish potential as it builds a base around strong support. A confirmed breakout above the rectangle could fuel a rally toward 99.456. Keep an eye on volume and confirmation candles for entry. ✅
US dollar, Trump has done it!Since the start of 2025, the US dollar has established itself as the weakest major currency on the Forex market, falling by over 11% against a basket of major currencies. If we extend the reference period to include Donald Trump's return to the presidency, the slide even reaches 12%. This spectacular decline is no accident, but the fruit of a strategy deliberately implemented by the Trump administration. The stated aim is clear: to restore the commercial competitiveness of American companies, boost exports and restore the price advantage of products made in the USA. In this respect, the fall of the US dollar on the FX has fulfilled its mission. Can we now envisage a low point for the US dollar on the FX?
1) US dollar: the battle for currency competitiveness has been won for US companies, and this should have a positive impact on the second-quarter results of S&P 500 companies published this July
Indeed, the fall in the dollar translates directly into a much more favorable environment for exporting groups, particularly those which generate the bulk of their sales in Europe or Asia. The conversion of foreign currencies into dollars mechanically boosts revenues and margins. For many multinationals, this factor is likely to contribute to strong earnings releases in the second quarter, as the reporting period takes place this summer. Beyond the immediate impact on corporate accounts, the greenback's depreciation is also encouraging a more structural trend towards reindustrialization and support for domestic production. The effects of this dynamic can already be seen in certain manufacturing segments, which are regaining international market share. Nevertheless, this scenario is not without its downsides: a weak dollar makes imports more expensive, especially raw materials, and weighs on companies dependent on foreign inputs. On the whole, however, the exchange rate policy implemented since January represents a successful gamble by Donald Trump to boost American competitiveness.
2) Technical analysis: can we anticipate a low point for the US dollar?
The crucial question today is whether the US dollar can pull back further, or whether a technical and fundamental bottom is emerging. From a technical analysis point of view, the DXY index, which measures the value of the dollar against a basket of currencies weighted 57% by the euro and 13% by the yen, remains anchored in a bearish trend. Some of the theoretical targets evoked by Elliottist analysis have been reached, but not all. However, long-term supports are visible on monthly charts: an uptrend line, particularly visible on the arithmetic scale, could act as a short-term stabilizer. Note that a potential bullish divergence is also possible on the weekly timeframe. But a bullish reversal pattern is still lacking to speak of a major low point, so let's not put the cart before the horse.
3) Scenarios and stakes for the rest of the year for the US dollar on FX
Beyond technical considerations, the persistent weakness of the US dollar acts as a revealing indicator of the tensions between trade policy and financial stability. On the one hand, a dollar under pressure is a powerful lever for supporting exports and consolidating US growth in an uncertain global context. On the other, a prolonged fall in the greenback fuels concerns about international confidence in dollar-denominated assets, and makes imports more expensive, which could rekindle inflationary pressures. This dilemma lies at the heart of the forthcoming trade-offs between the White House and the Federal Reserve.
For investors and companies exposed to Forex, several scenarios are conceivable. If the U.S. political agenda leads to a trade compromise, and if second-quarter publications confirm the robustness of the U.S. economy, the dollar is likely to find a technical floor around the supports identified on the DXY. In this scenario, a stabilization phase, or even a moderate rebound, could set in during the second half of the year. Conversely, if the trade stimulus policy is accompanied by a hardening of relations with Europe and China, or if the Fed is slow to react, the downward momentum could be prolonged.
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Potential USD Strengthening Ahead | DXY vs BTCUSD Outlook
⚡ The DXY has now reached the lower boundary of its long-term ascending channel, a historically significant technical zone where rebounds have occurred in the past.
💡 If this pattern holds, a strong rebound towards the 121 level on the DXY looks probable in the coming months.
What does this mean for BTC?
Historically, a strengthening USD has often resulted in a reciprocal effect on BTCUSD, leading to downward pressure on Bitcoin prices. The chart suggests that if the DXY rebounds as expected, BTCUSD could witness a significant decline proportionate to the USD's strength.
Key Takeaways:
✅ DXY at crucial technical support – rebound likely.
✅ Target for DXY: 121 zone.
✅ BTCUSD may face downside pressure as USD strengthens.
✅ MACD showing early signs of bullish reversal potential for DXY.
Note: This is a technical analysis-based view. Always use risk management and combine multiple factors before trading decisions. For Educational purpose only.
💬 What are your thoughts? Will the USD rally put pressure on Bitcoin again? Share below!
DXY Weekly ForecastDXY Weekly Forecast
- look for down move when reaching 98.00 level
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I’ll be sharing high-quality trade setups for a period time. No bullshit, no fluff, no complicated nonsense — just real, actionable forecast the algorithm is executing. If you’re struggling with trading and desperate for better results, follow my posts closely.
Check out my previously posted setups and forecasts — you’ll be amazed by the high accuracy of the results.
🇺🇸 Today's U.S. Data: Tariffs Starting to Bite?U.S. Data Journal – July 3, 2025
Today's U.S. economic releases showed a stronger-than-expected labor market, with Non-Farm Payrolls (NFP) surprising to the upside, alongside increases in factory orders and a solid ISM Services PMI print.
The combination of these indicators points to persistent demand strength across both goods and services. Moreover, the upward trend in factory orders and service sector activity suggests that tariffs are beginning to feed into cost structures, adding inflationary pressure from the supply side.
While the labor market remains resilient, the risk is that sticky input costs—partly tariff-driven—may complicate the disinflation narrative and potentially delay any dovish policy shift from the Fed.
DXY: Bears Are Winning! Short!
My dear friends,
Today we will analyse DXY together☺️
The recent price action suggests a shift in mid-term momentum. A break below the current local range around 96.860 will confirm the new direction downwards with the target being the next key level of 96.760.and a reconvened placement of a stop-loss beyond the range.
❤️Sending you lots of Love and Hugs❤️
USD Tries to Break the Tide at NFPIt's been a painful week and a half for the USD.
Around the June FOMC meeting a hopeful bounce had built as the Fed sounded a bit less-dovish. While inflation remains below their expectations the labor market had held up relatively well, and with the threat of possible inflation from tariffs they didn't seem to be in any hurry to cut rates.
But then last week opened with Michelle Bowman saying she supported a rate cut as early as July, and DXY put in a bearish engulfing pattern. And then into the end of Q2 it was constant bleeding as the currency continued to trip down to fresh three-year lows.
Interestingly, the shocking miss on ADP data this morning illustrates weakness in the labor market, yet the USD is currently showing its first green day since last week's open.
This is likely more due to just how oversold the currency has become but it sets the stage for NFP tomorrow. While that data point is a major driver, it's supply and demand, which is denominated by positioning, that pushes prices. For tomorrow the interest is in a better-than-expected NFP print bringing a short-term squeeze in the USD, after which markets will get a look to see just how aggressive bears remain to be. The big area of interest for this is the prior swing low, at the 97.91 level, which set support in April and then held the lows in June, until the late-month breakdown move.
To date that spot still hasn't been tested for resistance and if sellers do get a chance to offer at that level, we get to see how aggressive they remain to be. - js
Bearish drop?US Dollar Index (DXY) has reacted off the pivot, which has been identified as a pullback resistance and could drop to the 1st support.
Pivot: 97.80
1st Support: 95.40
1st Resistance: 99.36
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Dollar Testing The Channel Support It’s already Friday and the 4th of July, so US holidays are here, which means we could see thinner trading conditions later today. Still, the overall tone remains risk-on since yesterday, supported by better-than-expected Non-Farm Payrolls data and an ISM services reading at 50.8—still in expansion territory. So, there’s some optimism in the market, and this could continue if we get a positive outcome on the tariff front ahead of the July 9th deadline.
On the back of strong economic data, US yields are moving higher, but the Dollar Index is trying to come lower. It’s currently retesting the lower trendline of a corrective channel—likely due to the strong rally in US stock indexes, which are keeping the dollar under pressure.
On the daily chart, the Dollar Index still looks like it could head to new lows, but that move may not come today if holiday conditions slow down the market. We might have to wait until next week for a clearer breakout.
GH
DOLLAR INDEX BY 1;30 PM we are expecting the average hourly earnings m/m with a forecast 0.3% and previous 0.4% and Non-Farm Employment Change forecast 111K below past data of 139K
the rate of Unemployment is forecasted to be lower as monetary team is looking at 4.3% against previous data of 4.2%
but yesterday ADP -33k have given a clue that Non-farm data will come soft which will trigger sooner rate cut by feds.
dollar index and US10Y will be watched to see the direction of investment by investors.
if NON FARM EMEPLYMENT CHANGE AND UNEMPLOYMENT DATA REPORT COMES GREATER THAN FORECAST, DOLLAR AND US10Y WILL RISE AND WE SHORT GOLD ,AUDUSD SELL,GBPUSD SELL,EURUSD SELL ,USDJPY BUY.
THIS IS JUST FOR EDUCATIONAL PURPOSES ONLY.