DXY trade ideas
DXY Will Fall! Sell!
Hello,Traders!
DXY keeps strengthening
These last days and the index
Has almost reached a horizontal
Resistance level of 100.500
From where we will be expecting
A local bearish pullback and
A local move down
Sell!
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Review and plan for 2nd May 2025Nifty future and banknifty future analysis and intraday plan.
Quarterly results.
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please consult your financial advisor before taking any action.
----Vinaykumar hiremath, CMT
USDX,DXYUSDX price is near the important support zone 98.23-97.75. If the price cannot break through the 97.75 level, it is expected that in the short term there is a chance that the price will rebound.
**Very Risky Trade
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>>GooD Luck 😊
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US Dollar Bulls Return Ahead of NFPsThe US Dollar is testing resistance today at the 2023 / 2024 low day closes (LDC) at 99.95-100.42- looking for possible infection off this mark in the days ahead.
A closer look at USD price action shows the index trading into the resistance at the median-line in early U.S. trade. A topside breach above this threshold is needed to validate a breakout of the weekly opening-range with subsequent resistance see at the September high-day close (HDC) / September high at 101.77/92. Note that channel resistance converges on this threshold over the next few weeks and a breach / close above this slope would be needed to suggest a more significant low was registered last week / a larger reversal is underway. Subsequent resistance eyed at the 2016 high-close / 2020 high at 102.95/99 and the 2023 yearly open at 103.49.
Key support remains unchanged at the 2018 swing high / 61.8% retracement of the 2018 advance at 97.71-98.39- a close below this threshold would threaten another bout of accelerated USD losses with subsequent support seen at the 96-handle, the 2022 LDC at 95.17 and the March 2020 low at 94.65.
A rebound off key support takes the U.S. Dollar into initial resistance with major event risk on tap tomorrow. From a trading standpoint, losses should be limited to this week’s low IF price is heading higher on this stretch with a breach above 100.42 needed to fuel the next leg of the recovery.
-MB
DXY Analysis: Head & Shoulders or a Bull Trap? Despite a notable contraction in U.S. GDP and a sharp drop in Core PCE — both pointing to increasing recession risk — the U.S. Dollar Index (DXY) managed to sustain its rebound.
On the 4-hour chart, DXY is pushing above the neckline of an inverted head-and-shoulders formation. However, confirmation is still needed — a clean hold above 100.30 is essential to avoid a bull trap.
Upside Levels in Sight (if 100.30 holds):101.30 - 102.00 - 103.50
Downside Risk (if neckline fails):99.30 - 98.90 - 98.00
From a monthly perspective, DXY is holding above the 98 support and remains above the lower border of the up-trending channel extending from the 2008 lows, paving the way for another possible drop this year towards that border should the 98-support be decisively breached.
From a daily momentum perspective, the overall picture may signal a short-term trend reset before markets regain directional clarity
Written by Razan Hilal, CMT
Dollar Doomsayers Are Dead Wrong: Why USD Will Crush It in 2025.Road To a Million fam! It’s your boy, back from the wilderness after a hiatus that felt longer than a bear market in a crypto crash. I’m pumped to be here, ready to drop some truth bombs, dissect the markets, and—most importantly—help us all make some serious bank. Buckle up, because there’s a ton to unpack, and we’re diving headfirst into the biggest elephant in the room: the U.S. dollar (USD). Spoiler alert: it’s not dead, it’s not even close to dead, and anyone saying otherwise is probably shorting it while crying into their latte. Let’s get into it!
The Dollar Drama: What’s the Deal?
If you’ve been anywhere near a financial newsfeed in 2025, you’ve heard the doomsday choir singing, “The dollar is done! Kaput! Finito!” The Dollar Index (DXY) is down 8% this year, and the Twitter (sorry, X) finance bros are out here proclaiming the end of the greenback’s reign as the world’s reserve currency. They’re screaming about de-dollarization, BRICS taking over, and gold mooning like it’s 1971. Meanwhile, I’m over here sipping my coffee, looking at the charts, and laughing. Why? Because the dollar’s obituary is the most exaggerated piece of fan fiction since Twilight.
Let’s cut through the noise and get to the meat. The USD has taken a beating, sure, but an 8% drop in a year doesn’t mean it’s packing its bags and moving to the Bahamas. The dollar is still the king of global trade, the backbone of international commerce, and the currency you need if you’re, say, India buying oil from Saudi Arabia. No one’s trading rupees for barrels, folks. They’re selling rupees, buying dollars, and getting that black gold. That’s the reality, and it’s not changing anytime soon.
So, why the panic? Why is everyone acting like the dollar’s about to be replaced by Dogecoin or a shiny new BRICS coin? Let’s break it down, roast the naysayers, and then talk about how we’re gonna make money off this drama. Because, let’s be real, that’s why you’re here.
Why the Dollar’s Down (But Not Out)
First, let’s address why the DXY is down 8% in 2025. The Dollar Index, for those new to the game, measures the USD against a basket of major currencies—56% euros, plus some GBP, JPY, CHF, CAD, AUD, and a sprinkle of others. It’s like a currency Thunderdome: one dollar enters, a bunch of others try to take it down. When the DXY drops, it means the USD is weakening relative to these currencies. But why?
Interest Rate Shenanigans: Central banks are the puppet masters of forex markets, and their interest rate moves are like plot twists in a soap opera. The U.S. Federal Reserve cut rates by 25 basis points to 4.25–4.5% on December 18, 2024, signaling a slightly dovish stance. Meanwhile, the Eurozone slashed its rate to 2.25% on April 17, 2025. That’s a 2% differential in favor of the U.S., which is huge in forex land. But the market’s been spooked by the Fed’s cut, thinking it’s the start of a softening cycle, while other central banks (like the ECB) are also cutting, creating a weird global rate limbo.
Inflation Tug-of-War: Inflation in the U.S. is at 2.4%, while the Eurozone’s at 2.2%. That means U.S. investors are getting a real return of about 2% (4.25% interest minus 2.4% inflation), while Eurozone investors are basically breaking even (2.25% minus 2.2% inflation). Money flows where it’s treated best, and right now, the U.S. is the VIP lounge. But short-term traders are freaking out over inflation fears and potential rate cuts, which has pressured the USD.
Trump’s Tariff Tantrums: Oh, Donald. The man’s back in the White House, tweeting (X-ing?) up a storm about “Making America Great Again” with tariffs left, right, and center. His trade war threats—10–20% tariffs on imports, 60% on Chinese goods—have markets jittery. A stronger dollar could make U.S. exports pricier, so some traders are betting on a weaker USD to balance things out. Spoiler: I think they’re wrong, and I’ll explain why later.
De-Dollarization Hype: The BRICS bloc (Brazil, Russia, India, China, South Africa, and friends) has been pushing for a non-USD trade system, with talks of a new currency or gold-backed system. This has fueled the “dollar is doomed” narrative. But let’s be real: a BRICS coin? Good luck getting China and India to agree on anything, let alone a unified currency. And gold? It’s ripping higher (more on that later), but it’s not replacing the USD for global trade anytime soon.
So, yeah, the dollar’s been punched in the face a few times this year. But it’s like Rocky Balboa—it’s taken worse beatings and still comes out swinging. The question is: Is this the end of the dollar’s dominance, or is it just warming up for a comeback? Let’s look at the big picture.
The Dollar Ain’t Going Anywhere (Here’s Why)
Listen up, because this is where I get on my soapbox and preach. The dollar is not dead. It’s not even on life support. If anything, it’s doing push-ups in the gym, getting ready to flex on the haters. Here’s why I’m so bullish on the USD, and why you should be too.
1. The Reserve Currency Superpower
The USD is the world’s reserve currency, and that’s not just a fancy title—it’s a superpower. Over 88% of global transactions (SWIFT data, 2024) are settled in USD. When Russia wants to sell gas to China, they often price it in dollars. When Brazil buys soybeans from Argentina, guess what? Dollars. Even countries with beef against the U.S. (looking at you, Iran) hold USD reserves because it’s the only currency universally accepted for trade.
Why does this matter? Because every country needs USD to play in the global sandbox. India’s not paying Canada for oil in rupees. They’re converting to USD or dipping into their dollar reserves. This creates constant demand for the greenback, and that demand isn’t vanishing overnight. Could it fade in a decade? Maybe. But in 2025? No chance.
And let’s talk alternatives. Bitcoin? Ha! It’s a speculative asset, not a stable currency for trade. Gold? It’s mooning (up 25% in 2025, per Bloomberg), but you’re not paying for a tanker of crude with gold bars. A BRICS currency? Good luck getting 10+ countries with conflicting agendas to agree on a logo, let alone a monetary policy. The USD’s reserve status is a fortress, and it’s not crumbling anytime soon.
2. Interest Rate Domination
Let’s talk money—specifically, where it flows. The U.S. has a Fed funds rate of 4.25–4.5%, while the Eurozone’s at 2.25%. That’s a 2% gap, which is like the Grand Canyon in forex terms. If you’re an investor, where are you parking your cash? In the U.S., where you’re earning a 2% real return (4.25% minus 2.4% inflation), or in the Eurozone, where you’re getting a big fat zero (2.25% minus 2.2% inflation)?
This is why the Eurozone’s in trouble. The ECB’s stuck in a trap—low rates to prop up struggling economies like Spain and Italy, but that makes the euro less attractive. Meanwhile, the U.S. is the cool kid at the party, attracting capital like moths to a flame. And don’t forget: the Eurozone’s a mess of 20 countries with one monetary policy but wildly different fiscal policies. Spain’s productivity isn’t Germany’s, no matter what the ECB pretends. The euro’s gonna weaken against the USD, mark my words.
3. Trump’s Dollar Rocket Fuel
Love him or hate him, Trump’s policies are about to light a fire under the USD. His “America First” agenda includes bringing manufacturing back to the U.S., which means building factories from scratch. Those factories need raw materials—steel, copper, you name it. And guess what currency they’ll use to buy that stuff? Ding, ding, ding—USD!
Plus, Trump’s tariffs (10–20% on imports, 60% on China, per Reuters) will reduce U.S. imports, meaning fewer dollars flowing out of the country. But foreign countries still need USD to repay their dollar-denominated debts (global USD debt is $13 trillion, per the BIS). Less USD supply, same demand? That’s a recipe for a stronger dollar. Trump’s shaking markets like a toddler with a snow globe, but in this case, it’s bullish for the USD.
4. Contrarian Goldmine
Here’s a little trading wisdom: when everyone’s screaming the same thing, they’re usually wrong. Right now, 99% of the finance world (or at least the loud ones on X) is saying the dollar’s toast. That kind of extreme sentiment is a red flag. Markets love to screw over the crowd, and when everyone’s shorting the USD, it means the bottom is either in or damn close.
I’m calling it: the DXY’s either bottomed already or will soon, probably around 97. When sentiment’s this bearish, it’s like the market’s handing you a gift-wrapped opportunity. And I’m not about to let it pass.
The Charts Don’t Lie: DXY Technical Breakdown
Alright, enough macro talk—let’s get to the fun stuff: charts. I’ve been staring at these squiggly lines for 20+ years, and they’re telling me the USD’s about to go on a tear. Let’s break it down, from the big picture to the nitty-gritty.
Long-Term View: The 20-Year Monthly Chart
Zoom out, fam. When in doubt, zoom out. I’m looking at the DXY on a monthly chart, going back to 2005. Each candle is one month, and the trend is crystal clear: up. The DXY’s been cruising in an ascending channel for two decades, like a train chugging along at 200 miles an hour. Sure, it’s hit some bumps—2008, 2011, 2020—but the direction’s undeniable.
Right now, the DXY’s sitting around 100, down from its 2024 highs. But it’s still within that bullish channel. I’m drawing trendlines here: a lower trendline connecting the lows (around 97–98) and an upper trendline around 120–125. The price is hugging the lower end, which screams “buying opportunity” to me.
My big-picture call? The DXY’s heading to 115–117 by late 2026 or early 2027, maybe even sooner (Jan 2026, anyone?). Why? Because a 20-year trend doesn’t reverse overnight. The dollar’s not dying—it’s just taking a breather before the next leg up. If you disagree, hit the comments. Let’s duke it out.
Short-Term View: The 4-Hour Chart
Now, let’s zoom in to the 4-hour chart for the past couple of months. The short-term trend’s been down, no question—DXY’s been sliding like a kid on a waterslide. But here’s where it gets juicy: I’m seeing a textbook inverse head-and-shoulders pattern. For the newbies, that’s a bullish reversal pattern, and it’s already played out like a charm.
Pattern Breakdown: The left shoulder formed in early April, the head hit a low around April 10, and the right shoulder wrapped up by April 21. The neckline (resistance) was around 99.8–100, and guess what? The DXY broke it like a champ.
Trendline Break: On top of that, the DXY smashed through a short-term downtrend line, confirming the bullish vibes.
RSI Divergence: Check the Relative Strength Index (RSI). From April 10 to April 21, the price made lower lows, but the RSI was making higher lows. That’s a classic bullish divergence, screaming, “The momentum’s shifting!” We jumped in when the trendline broke, and boom—profits are rolling in.
Price Targets and Trading Plan
Here’s the game plan, fam. The DXY’s already broken the neckline, so we’re in. Now, we’re watching these levels:
Immediate Target: 100.28
The DXY needs to close above 100.28 by the weekend (May 2–3, 2025). If it does, it’s go time. I’m telling you, go all in (responsibly, of course). This level’s key because it’s a minor resistance from prior price action. A close above it confirms the breakout.
Next Target: 103–103.5
This is the big one. The 103 zone is a major inflection point—tons of price action and clutter from earlier this year. If the DXY breaks 100.28, it’s got a clear path to 103. Expect some resistance around 100.27 (a support-turned-resistance level), but once it clears that, it’s smooth sailing to 103.
Probability: I’m giving this an 80% chance of heading higher, 20% chance of a pullback. Those are odds I’ll take any day.
Long-Term Goal: If the DXY follows its 20-year channel, we’re looking at 115–117 by 2026–2027. That’s not a pipe dream—that’s history repeating itself.
Trading Tip: We’re already positioned from the trendline break. If 100.28 breaks, scale up. If it pulls back to 97 (the lower trendline), that’s a dream buy zone. But don’t get caught in the daily noise—Trump’s tweets, CPI reports, whatever. Focus on the big picture.
Gold, Tariffs, and Trump: The Side Characters
I know you’re itching to talk gold, tariffs, and Trump’s wild ride. I’m saving the deep dive for another post (stay tuned!), but here’s the quick and dirty.
Gold: Gold’s up 25% in 2025 (Bloomberg), and everyone’s like, “See? Dollar’s dead!” Nah, fam. Gold’s ripping because of tariff fears, geopolitical chaos, and central banks hoarding it like Smaug. It’s not a dollar killer—it’s just doing its own thing. We’ll break it down soon.
Tariffs: Trump’s tariff plans (10–20% on imports, 60% on China) are shaking markets. They’ll make imports pricier, reduce USD outflows, and boost domestic demand for dollars. Bullish for USD, bearish for emerging markets. More on this later.
Trump: The man’s a market wrecking ball. He’s out here calling for lower rates one day, tariffs the next, and probably tweeting about aliens by Friday. But his manufacturing push and tariff policies are USD rocket fuel. Ignore the noise—focus on the policy.
Why You Should Care (And How to Profit)
Look, I get it. You’re not here for a PhD in economics—you’re here to make money. So, why should you care about the USD? Because it’s the backbone of the forex market, and where the DXY goes, opportunities follow. A stronger dollar means:
Forex Trades: Go long USD/EUR, USD/JPY, or even USD/CAD. The euro’s toast with that 2.25% rate, and the yen’s stuck in Japan’s low-rate purgatory (0.25%, per BOJ).
Stock Market Impact: A stronger USD could pressure U.S. multinationals (exports get pricier) but boost domestic firms. Think Walmart, not Apple.
Commodities: Oil and metals (priced in USD) could dip as the dollar rises. Short crude if you’re feeling spicy.
Emerging Markets: Countries with USD debt (like Turkey or Argentina) are gonna feel the heat. Avoid their currencies like the plague.
Here’s how we’re playing it at Edge-Forex:
Long DXY: We’re in at the trendline break, scaling up if 100.28 breaks. Target 103, then 115 long-term.
Risk Management: Keep stops tight below 99.5 (short-term) or 97 (long-term). Don’t bet the farm—markets love surprises.
Stay Nimble: Watch for Fed signals, ECB moves, or Trump’s next X rant. We’ll adjust as needed.
The Big Picture: Don’t Get Lost in the Noise
I know it’s tempting to get sucked into the daily drama—Trump’s latest outburst, a hot CPI print, or some X influencer shilling a “dollar crash” thesis. But trading’s about cutting through the noise. Zoom out. Look at the 20-year DXY chart. Look at the interest rate gap. Look at the USD’s reserve status. The dollar’s not going anywhere, and it’s about to remind everyone why it’s the boss.
My advice? Get out of the short-term clutter. Stop refreshing X every five minutes. Focus on the trends that matter: central bank rates, capital flows, and technical setups. The DXY’s setting up for a monster move, and we’re gonna ride it like surfers on a tsunami.
Wrapping It Up: Let’s Make Some Freaking Money
Alright, Edge-Forex fam, that’s the deal. The dollar’s not dead—it’s just been napping, and it’s about to wake up with a vengeance. The DXY’s forming a bottom, the charts are screaming “buy,” and the macro setup (rates, Trump, reserve status) is a bullish trifecta. We’re already positioned, and if 100.28 breaks, we’re going big.
I’m back, baby, and I’m here to drop regular updates, roast the haters, and help us all stack some serious profits. Got questions? Drop ‘em in the comments. Disagree with my DXY call? Bring it on—let’s debate. Just don’t be that guy shorting the dollar while the rest of us are cashing checks.
Stay tuned for the next post (gold’s getting its moment soon), and let’s make some freaking money together. Out!
A Brief Summary of Trump's 100 Day and Effects on U.S. EconomyOverview
In the 2024 campaign, Donald Trump proposed an aggressive "America First" economic agenda. His key proposals centered around four pillars: tariffs and trade, tax policy, energy and environment, and regulatory changes . These proposals built upon his first-term policies but were more sweeping and intense.
Key Proposals
1. Tariffs & Trade
Universal import tariffs of 10–20% across all goods.
60% tariffs on Chinese imports , plus targeted tariffs on Mexico and Canada (linked to immigration and drug policy).
Threatened reciprocal tariffs and 100% tariffs on BRICS nations .
Proposed tariffs on U.S. companies that offshore production.
2. Taxes & Fiscal Policy
Make all 2017 Tax Cuts and Jobs Act provisions permanent (individual, corporate, estate taxes).
Lower corporate tax rate to 20% or 15% for domestic production.
Expand tax credits for “ Made in America ” goods, SALT relief, caregiver and overtime pay.
Analysts estimate a $5–11 trillion reduction in federal revenue over a decade due to these cuts.
3. Energy & Environment
Rescind Biden-era climate regulations, including EPA emissions standards and clean-energy mandates.
Repeal unspent Inflation Reduction Act (IRA) funds, ending subsidies for EVs, solar, wind, and batteries.
Open federal lands and waters for fossil fuel production, aiming to boost oil output by 3 million barrels/day .
4. Deregulation & Crypto
Slash regulations in energy, finance, and technology sectors.
Promote crypto: proposed a government Bitcoin reserve and replacing SEC leadership.
Vowed to cut federal bureaucracy and fast-track project permitting.
Projected Economic Impact (2024–2026)
GDP Growth
Analysts predict modestly slower growth under Trump.
High tariffs may reduce long-run GDP by 6% and wages by 5% , per Penn Wharton Budget Model.
Tariff effects are projected to outweigh gains from tax cuts and deregulation.
Employment
Slower GDP growth would moderate job gains.
Tariffs could hurt export industries and raise input costs.
Deregulation and tax incentives may support hiring in energy and construction.
Inflation
Most economists agree Trump’s tariffs would raise consumer prices.
Combined with deficit-financed tax cuts, inflation could rise 4–7 percentage points above baseline by 2026.
This would likely delay or reverse Fed rate cuts.
Interest Rates
Rising inflation would pressure the Federal Reserve to keep rates higher for longer.
Bond markets have already priced in higher yields in response to Trump’s proposed tariffs.
Stock Market
Markets initially rallied on tax and deregulation hopes.
Bitcoin hit all-time highs; S&P 500 surged post-election.
However, trade war fears caused sell-offs in early 2025, especially in tech and consumer sectors.
Business & Consumer Sentiment
Business leaders expressed concern over trade uncertainty.
Consumer polls show widespread fear of rising prices.
CEO confidence rose post-election due to expected pro-business policies, despite tariff concerns.
Summary Outlook
GDP growth expected to slow below the ~ 2.8% pace of late 2024.
Inflation likely to climb above 3% , driven by tariffs and fiscal stimulus.
Interest rates may remain high due to inflationary pressures.
Markets may oscillate—rallying on tax cuts but reacting negatively to trade disruptions.
Overall effect is mixed: pro-growth tax cuts and deregulation may not fully offset the drag from trade and inflation risks.
Sources
Tax and Fiscal: Tax Foundation, Committee for a Responsible Federal Budget (CRFB)
Trade and Tariffs: Center for Strategic and International Studies (CSIS), Penn Wharton Budget Model
Energy and Environment: NPR, Thomson Reuters, Hoover Institution
Macroeconomic Impact: Hoover Institution, Stanford Institute for Economic Policy Research (SIEPR), Peterson Institute
Market Reaction: Reuters, ABC News, AP, Bloomberg
Sentiment Surveys: PwC, Conference Board, PBS, ABC/Washington Post
DXY Forecast: More Bearish OrderflowThis week, I anticipate further downside movement on the DXY, with price potentially reaching a key area of interest—a bullish order block. While the reaction at this level remains uncertain, my current bias remains bearish unless a break of structure to the upside signals a continuation of the bullish trend.
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This is not meant to be financial advice and I am not your financial advisor. These are my views and my opinions.
Today I mostly go over $VARA levels and both bullish and bearish scenarios.
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IMP update for all Forex Traders Expect the Dollar Index (DXY) to appreciate in the near future. However, a further decline into the green highlighted region is possible before this upward movement. The green zone represents a potential key reversal area. Monitor the following currency pairs for trading opportunities if the DXY begins to climb:
BUY - USDCAD, USDCHF, USDSGD;
SELL - EURUSD, GBPUSD
Gold, Nasdaq & USDI am comparing the relationship between Gold, the Nasdaq and the US Dollar.
Since 2000, here are approximate returns for each;
Gold up 550%
S&P up 254%
DOW up 364%
Since 2020:
In the past 5 years, this shifted slightly with Gold up about twice as much as the Nasdaq.
Since 2024:
In the past year, Gold has outpaced the Nasdaq 5:1 on gains.
__________________________________________________
The dollar had three notable high gain/peak years in;
1985
2002
2022
Those peak dollar years occurred when the market was in a correction phase, selling off before the next rally, and followed a bull market rally. After each of those peak dollar years, a market rally occurred that lasted from a few months to a few quarters with substantial gains. Typically when the dollar is strong, gold prices have been suppressed. If the dollar weakens, it may allow Gold to continue a rally. We may have already seen that market rally, which just peaked in December 2024 after the dollar peaked in 2022.
If the dollar continues to lose strength, Gold prices will likely continue to rise.
from Bloomberg 4 days ago:
"A dollar gauge is on track for its worst performance during the first 100 days of a United States presidency in data going back to the Nixon era, when America abandoned the gold standard and switched to a free-floating exchange rate."
The correlation between Gold and Equities lacks any data to support, especially considering the past 20 years of market data. Gold's relationship with the markets is an algorithm that includes the US Dollar. If the dollar is strong, we see Gold prices suppressed. When the dollar is weak, we see Gold prices unlocked and free to make gains. That's where Gold is now.
Forecast:
The only information available to base a forecast for Gold pricing would be the US Dollar based on the economic relationship of the USD and Gold. Since the dollar has pulled back slightly and appears to be in a slightly downward trajectory, it is expected that Gold prices will continue to gain, although likely at a slower rate.
Since the Dollar peaked in 2022, followed by a bull market for several quarters after that event, the Nasdaq is likely headed further into correction territory followed by a consolidation phase before beginning another bull market. The Nasdaq is currently in the second annual financial quarter of a pullback that will likely last several more quarters. This market correction began in December 2024.
DXY 4H Chart AnalysisThe U.S. Dollar Index is currently consolidating near the 99.400 level, within a broader bearish trend. Price is sitting just above key H4 support (~99.000), making this a critical decision zone.
Bullish scenario: Rejection from 99.000 could lead to a retracement towards 100.000, and potentially 102.500 if momentum holds.
Bearish scenario: A break below 99.000 would confirm further downside, possibly targeting 97.500 and beyond.
Traders should wait for clear price action confirmation before committing to a direction.
DXY Technical Analysis – Bearish BiasDXY Technical Analysis – Bearish Bias
Market Structure: The price attempted a recovery but failed to break above a strong supply/resistance zone around 99.30–99.40.
Price Action: A rounded bottom (U-shape) move formed, but instead of continuation, the price rejected the resistance and started to fall.
DXY Bullish move| 🔹 Pair / TF | DXY, 1 h → Lower Timeframes |
| 🔹 Bias | Bullish (buying potential support) |
📊 Key Levels
Level: ~99.117 (orange shaded zone)
Role: Recent Swing Low / Potential Support Zone
Level: ~98.744
Role: Lower boundary of the potential support zone
Level: ~99.727
Role: Potential Resistance (previous swing high)
Level: ~100.116
Role: Higher Potential Resistance
🚨 Trigger
Price has recently touched the ~99.117 - ~98.744 orange shaded zone, which appears to be acting as a potential support area.
There are signs of potential rejection from this zone, indicated by the recent upward price action.
Look for bullish confirmation signals on lower timeframes within this zone.
✅ Confirmation
Observe lower timeframes (e.g., 15m, 5m) for bullish reversal patterns such as double bottoms, bullish engulfing candles, or pin bars forming within the support zone.
The volume indicator at the bottom shows increasing buying volume within the support zone, suggesting potential accumulation.
Look for the Stochastic or RSI on lower timeframes to show oversold conditions followed by a bullish crossover or break above a downward trendline.
No significant bearish momentum or strong selling volume evident as price tests the support zone.
🎯 Entry & Stops
| 🔶 Entry Zone | ~99.117 – ~98.800 (within the potential support zone) |
| 🔴 Stop-Loss | Below the lower boundary of the support zone, potentially around ~98.600 - ~98.500 to allow for some buffer |
Place a Buy Limit or Buy Stop order within the entry zone, depending on your preferred entry style and confirmation.
Risk: Determine your position size based on your risk tolerance and the calculated stop-loss in pips.
🎯 Profit Targets
| Target | Level | Pips (approximate) | RRR |
| :----- | :--------- | :----------------- | :--------- |
| T1 | ~99.727 | ~60-70 | 1 : 1 or better |
| T2 | ~100.116 | ~100-120 | 1 : 1.5 or better |
Scale out:
Consider taking partial profits at T1.
Let the remaining position run towards T2, potentially adjusting your stop-loss to breakeven or in profit.
⚙️ Trade Management
Once the trade is in profit (e.g., reaching a certain pip gain or T1), consider moving your stop-loss to breakeven to protect your capital.
Monitor price action around T1. If there are strong signs of selling pressure, consider closing the remaining position.
Pay attention to any potential resistance levels or significant selling volume as price approaches your target levels.
🔑 Rationale
Price is testing a recent swing low area, which has the potential to act as support.
Increasing buying volume within the support zone suggests that buyers are stepping in.
Bullish reversal patterns on lower timeframes would confirm the rejection of the support zone.
Aiming for the previous swing high (~99.727) and the higher potential resistance (~100.116) provides logical profit targets.
⚡ Highlight:
This is a bank-order-flow style fade, looking to buy at a potential support zone after a recent pullback, anticipating a reversal and continuation of potential upward momentum. The increasing buying volume within the support zone is a key observation.
DXYIf we look at nature's theory , we can define see that the impulsive phase is to the upside and the market corrects to the down side.
We have a clear uptrend with 2 confirmed touches and now anticipating a bullish impulse on the third touch
The third touch is also a third touch of a pattern with 2 confirmed touches waiting for the final touch to go
Multiple confirmations
$USD Breaks Down – “Mission Accomplished” or Just Getting📉 The US Dollar Index ( AMEX:USD / TVC:DXY / $USINDEX) has officially broken beneath the multi-year support zone from 2020, right as Trump prepares to declare "Mission Accomplished".
From Inauguration to Liberation Day, and now the final stage: Meltdown.
🧭 Key Events Marked:
🟥 Inauguration
🟥 Trade War
🟥 Liberation Day
🟩 Mission Accomplished
🔻 Meltdown incoming?
📊 The breakdown aligns with a sharp spike in Nasdaq down volume (see chart). This isn't just a currency move — it's a market-wide stress signal.
Watch closely:
TVC:DXY below 99 = structural weakness.
Risk-on assets may melt up temporarily, but volatility could snap back fast.
Global currency pairs ( FX:EURUSD , FX:USDJPY , FX:GBPUSD ) are all on alert.