DXY trade ideas
Persistent concerns about the US economy are weighing on the DXY
US-China tensions deepened as President Trump criticized China’s rare earth exports and threatened broader tech restrictions and visa cancellations for Chinese students. He also vowed to double tariffs on foreign steel to 50% to strengthen the US steel industry. April headline PCE inflation eased to 2.1% (prev. 2.3%, cons. 2.2%), partly soothing tariff-related inflation concerns.
DXY broke below the 99.00 threshold and dropped to a 6-week low. EMA21 is widening its gap with EMA78, suggesting a potential extension of the bearish structure. If DXY breaks below the support at 98.00, the index may decline further to 97.00. Conversely, if DXY reclaims the resistance at 99.00 and breaches above EMA21, the index could advance to 99.50.
DXY Analysis Next Week After Market OpenUS tariff policy is becoming a key variable affecting the Fed's interest rate policy. Current tax policies are facing negative reactions and declining support rates, creating pressure on the US government to promote trade agreements and implement tax cuts to stabilize the economy.
At the FOMC monetary policy meeting in May, the Fed kept interest rates unchanged, showing a cautious stance on inflation risks and low unemployment rates. The latest employment figures show that the possibility of the Fed keeping interest rates unchanged at the June meeting is very high.
As inventory accumulation can increase inflation, the Fed will wait for a clearer assessment of the impact of tax policies before making a decision. Accordingly, the possibility of the Fed cutting interest rates up to 3 times in the second half of the year is low.
The US dollar is expected to continue to decline to adjust
Best regards StarrOne !!!
Bretton Woods 2.0?Examining the long-term trend of TVC:DXY since the 1980s, we might be facing a staggering 40% reduction in valuation, potentially landing us around 60. If the US were to devalue the dollar this drastically, could it effectively erase the national debt? 🤔 Is Trump bold enough to consider such a move?
We know the FED is going to cut eventually, the question is when and by how much? Initial claims came in higher than estimated, with cracks beginning to show in the labor market, how much longer can JPow hold out?
Bearish reversal?US Dollar Index (DXY) is rising towards the pivot and could reverse to the 1st support.
Pivot: 100.21
1st Support: 99.08
1st Resistance: 101.14
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Dollar Index (DXY) Completes Correction, Resumes DowntrendThe short-term Elliott Wave analysis for the Dollar Index (DXY) indicates that the cycle from the January 13, 2025 high is unfolding as an impulse pattern, characterized by a five-wave structure moving in the direction of the larger trend. The decline from the January 13, 2025 high began with wave (1), which concluded at 106.96. This was followed by a corrective rally in wave (2), peaking at 109.88. The Index then resumed its downward trajectory in wave (3), reaching 97.92, before a corrective wave (4) rally ended at 101.99, as illustrated in the 1-hour chart below.
Currently, wave (5) is in progress, unfolding as another impulse in a lesser degree. From the wave (4) high, wave (i) concluded at 100.27, followed by a corrective wave (ii) rally ending at 101.259. The Index continued lower in wave (iii) to 99.33, with a subsequent wave (iv) rally peaking at 100.118. The final leg, wave (v), completed at 98.69, finalizing wave ((i)). The corrective wave ((ii)) unfolded as a double three Elliott Wave structure, with wave (w) reaching 99.87. Index then pullback in wave (x) to 99.48, before concluding wave (y) at 100.54. The Index has now turned lower in wave ((iii)). In the near term, as long as the pivot at 101.99 remains intact, the Dollar Index should extend its decline, potentially reaching new lows as the impulse wave continues.
DXY 15-Minute Technical & Fundamental AnalysisDXY 15-Minute Technical & Fundamental Analysis
DXY has reclaimed momentum, trading at 99.300, after strong U.S. economic data and a hawkish tone from Fed officials signaled policy stability — boosting short-term confidence in the U.S. dollar. On the 15-minute chart, we’re seeing a bullish structure reinforced by clean liquidity manipulation and institutional flow.
Price confirmed bullish intent after breaking above minor key resistance at 99.250, triggering a wave of buy-side momentum. A brief liquidity hunt below 99.250 followed — a textbook manipulation phase — before buyers stepped back in.
DXY then formed Higher Highs and Higher Lows, indicating a well-supported uptrend. Price is now sitting inside the liquidity zone, where smart money often positions for the next leg up.
📊 Trade Setup
📍 Area of Interest (AOI): 99.140 (Buy Limit)
🛡 Stop-Loss: 98.990 (Below liquidity grab and minor support)
🎯 Take Profit: 99.610 (Next minor resistance / 1:3 RR)
This setup aligns with institutional behavior, offering a high-probability entry for short-term trend continuation.
📰 Fundamental Outlook
🇺🇸 USD Strength Backed by Short-Term Fundamentals
Resilient U.S. Data: Retail sales and durable goods orders beat forecasts, signaling economic strength and limiting downside for the dollar.
Fed Stays Hawkish: Policymakers have reiterated their "higher for longer" stance, reducing expectations for rate cuts and supporting the dollar.
Safe-Haven Demand: Geopolitical concerns and weak economic data abroad have driven flows back into the USD as investors seek stability.
Yield Support: Elevated U.S. bond yields continue to attract foreign capital, giving additional strength to DXY.
📌 Disclaimer:
This is not financial advice. Always wait for proper confirmation before executing trades. Manage risk wisely and trade what you see—not what you feel.
BULLISH REVERSALThe frame of a possible trade
On the Daily time frame, going back to what we can identify as the parent move
price gapped to the upside, filled with wicks and candles, price moves to the upside
leaving short-term lows(STL)
Price retraced and took liquidity at STL
On the Daily time frame, price expands violating a Daily Sell-side Imbalance Buy-side Inefficiency
05/29/25 Price gapped up, taking out liquidity at a STH
If this price action implies bullishness, then price will have to take/deliver some form of sellside
This is happening ahead of the Core PCE Price Index Data release on Friday 30/05/25
DXY: Bulls Are Winning! Long!
My dear friends,
Today we will analyse DXY together☺️
The recent price action suggests a shift in mid-term momentum. A break above the current local range around 99.377 will confirm the new direction upwards with the target being the next key level of 99.823 and a reconvened placement of a stop-loss beyond the range.
❤️Sending you lots of Love and Hugs❤️
US DOLLAR FORECAST (update)Update of stalking bullish behavior in the USD instrument.
Intermarket confluence has aligned instruments such as Gold & US Stocks are soft to Bearish, I focus on XAUUSD and US30 outside of Oil to gauge validity of idea.
Thus said focus is on the 5 min chart, we seek rejections framed from 30 min area of interests.
Trigger should be after 5m Bullish playbook, manipulation is a sign of a healthy "auction".
DXY is pulling back decisivelyIt looks like DXY ready a pullback since it has already showing a significant weakness. We should anticipate continue pullback until NFP release next month. I'd like to see the current Dealing Range High purged and fail to push higher to confirm that the sell program is still intact.