DXY trade ideas
DXY Bulls Ready — Can Powell Spark the Rally?📊 DXY Pre-FOMC Outlook
In my previous analysis released on Monday, I expected the Dollar Index to fill the gap around the 98.60 zone and range below the key red line at 99.429.
Now, with less than 8 hours left until the highly anticipated FOMC rate decision, it’s time to take a closer look at tonight’s event and what it could mean for the markets.
From a purely technical perspective — setting the news aside — the Dollar Index looks ready to break through the crucial 100 level and kick off a strong bullish rally.
However, recent political pressure from Trump urging rate cuts, along with visible tension between him and Fed Chair Jerome Powell, has created uncertainty. If it weren’t for these conflicting signals, I would’ve confidently expected a clean breakout above 100.
As much as I enjoy trading news-driven events, I’ll likely stay out of the market tonight and observe from the sidelines. The setup is tempting, but the dual narratives make it risky.
That said — if you ask for my final take — I believe the stage is fully set for a bullish dollar and a corresponding drop in gold, EUR, GBP, and other major assets.
Let’s see how it plays out. 👀💥
DXY Poised for Bullish Expansion After Accumulation PhaseThe DXY appears to be completing a corrective phase, transitioning into a potential accumulation zone. Price action shows signs of compression, reduced volatility, and higher lows, suggesting that sellers are losing momentum while buyers begin to absorb liquidity.
This behavior often precedes an expansion phase. If current structure holds, we may soon see a bullish breakout, with price aiming to reclaim previous highs or key resistance levels. A confirmed breakout above the immediate consolidation range could provide a strong signal for long setups.
I'm watching for:
A clear break and retest of local resistance
Bullish confirmation via volume or momentum indicators (e.g., RSI or MACD crossover)
Continuation patterns (flags or bullish order blocks)
As always, risk management is key. This is not financial advice — trade according to your plan.
#DXY #USD #DollarIndex #Forex #TechnicalAnalysis #Bullish #PriceAction #Accumulation #Breakout #TradingIdeas #MarketAnalysis #SwingTrading #SmartMoney #LiquidityGrab #ChartPatterns #RSI #MACD #SupportAndResistance #TrendReversal #DollarStrength
USDX-SELL strategy 6 horuly chart Reg.ChannelThe index has moved up sharply, and as always, when over speeding, one may get a speeding ticket. :) anyway, on a serious note, we are quite overbought and above the Reg. Channel a bit. This means over time we may see a pullback, which can bring us to lower 99.00s.
Strategy SELL @ 100.00-100.40 and take profit near 99.07 for now.
U.S. Dollar Index (DXY) – 15M Chart Analysis | Aug 8, 20251. Market Structure:
DXY is trading in a short-term range between 98.471 resistance and 97.952 support, following a sharp downtrend from the 99.072 high.
2. Supply Zone Pressure:
The 98.471 level acts as a strong intraday supply, repeatedly rejecting price and limiting bullish momentum.
3. Demand Zone Cushion:
The 97.952 level is holding as immediate support. Below that, the yellow zone around 97.60–97.45 is a major demand area where buyers may step in.
4. Momentum Bias:
Lower highs from the recent peaks signal ongoing bearish pressure. Short-term rallies are getting sold into, suggesting sellers control the market.
5. Next Move:
Bullish: Break above 98.471 opens path to 98.829–99.072 .
Bearish: Break below 97.952 targets the 97.60–97.45 demand zone.
DXY: Absolute Price Collapse Ahead! Short!
My dear friends,
Today we will analyse DXY together☺️
The market is at an inflection zone and price has now reached an area around 98.553 where previous reversals or breakouts have occurred.And a price reaction that we are seeing on multiple timeframes here could signal the next move up so we can enter on confirmation, and target the next key level of 98.471.Stop-loss is recommended beyond the inflection zone.
❤️Sending you lots of Love and Hugs❤️
DXY 4Hour TF - August 3rd,2025🟦 DXY 4H Analysis Neutral idea
📅 August 3, 2025
🔹 Top-Down Trend Bias:
• Monthly – Bearish
• Weekly – Bearish
• Daily – Bearish
• 4H – Bullish
The dollar index is in a larger bearish cycle but just bounced from near-term resistance around 100.250. While the 4H shows temporary strength, we’re trading into major resistance and we may see it short lived.
🔍 Key Levels to Watch
• Support: 98.00
• Resistance Zones: 99.25 and 100.25
• 61.8% Fib: 98.57
Price is currently testing structure after rejecting from the 100.25 resistance zone. This area remains a strong ceiling unless the higher timeframe structure shifts.
✅ Scenario A: Bearish Continuation (Blue Path)
1. Bearish Structure confirmation below the current zone
2.If bearish rejection confirms, expect price to continue toward 98.00, possibly 97.50
3.Clean confluence with the higher timeframe trend
⚠️ Scenario B: Bullish Extension (Orange Path)
1.If price breaks and holds above 99.25, we may see a continuation toward 100.25
2.Short-term bullish strength, but against HTF bias
3.Must treat as a counter-trend idea unless confirmed with HTF structure shift
🧠 Final Notes
• 98.50 is the key decision zone, watch reaction closely
• Trend remains bearish on all major timeframes
• Don’t force the long, lean bearish unless structure proves otherwise
Candle close above 100 after 2 months.If the Dollar Index manages to close above the 100 level today, following the important news release, there's a chance the upward move could continue toward the key 101 zone next week.
However, unless it breaks above the 101 level with strong momentum, the overall trend in the higher timeframes still remains bearish.
DXY Dollar Index Review: The US Dollar flexes its muscles again.
Chart analysis suggests a medium-term uptrend in the dollar index, signaling growing strength in the U.S. dollar. The current price range between 96 and 97 has effectively prevented further declines and has acted as a strong support and demand zone.
For any further downward move to occur, the price would first need to retest and break this zone—but only after a temporary rise and corrective upward movement, which may take some time to unfold.
Further analysis points to price stabilization in the medium term, with a potential for a sideways to upward trend developing within the 97 to 110 range.
In this scenario, three potential price targets can be outlined:
First and most probable target: 100.30 – 101.70
Second, possible target: 103.20 – 104.30
Third and final target: 107.10 – 110.10
Current price: 98.31
Stop loss: Below 95.90
DOLLAR INDEXDepartments Responsible for Each Economic Report
Indicator Responsible Department/Source
Average Hourly Earnings m/m U.S. Bureau of Labor Statistics (BLS), part of the Department of Labor
Non-Farm Employment Change BLS (Establishment Survey)
Unemployment Rate BLS (Household Survey)
Final Manufacturing PMI S&P Global/Markit (private company)
ISM Manufacturing PMI Institute for Supply Management (ISM, private sector)
ISM Manufacturing Prices Institute for Supply Management (ISM)
Revised University of Michigan (UoM) Consumer Sentiment University of Michigan (private/public university)
Construction Spending m/m U.S. Census Bureau, Department of Commerce
Revised UoM Inflation Expectations University of Michigan
How the Federal Reserve Interprets “Greater Than” or “Lower Than” Forecast
1. Average Hourly Earnings,
2.Non-Farm Payrolls,
3. Unemployment Rate
Higher than forecast (stronger labor market):
Tight labor markets (higher wages, more jobs, lower unemployment) suggest inflationary pressure.
The Fed may view this as a signal to keep rates higher for longer, as wage and job growth could fuel inflation.
Lower than forecast (weaker labor market):
Signals cooling in employment and wage growth, reducing upward pressure on inflation.
The Fed may see this as justification to consider easing policy or at least pausing further rate hikes.
2. Manufacturing PMIs (ISM, S&P)
Above 50: Signals expansion in manufacturing; below 50 indicates contraction.
Higher than forecast: Points to stronger economic momentum; the Fed may see upside risks to inflation.
Lower than forecast: Indicates weaker manufacturing activity; a possible sign of slowing demand, which could support rate cuts or dovish policy if persistent.
3. ISM Manufacturing Prices
Higher than forecast: Suggests inflationary pressures in manufacturing input costs; Fed interprets this as a reason for vigilance on inflation.
Lower than forecast: Implies easing input price pressures, supporting a dovish outlook if inflation remains subdued.
4. University of Michigan Consumer Sentiment & Inflation Expectations
Stronger than forecast sentiment: Consumers are more optimistic, often a sign of solid spending potential. May amplify inflation if this leads to greater demand.
Higher inflation expectations: If consumers expect higher future inflation, this can become self-fulfilling and the Fed may maintain tighter policy.
Weaker sentiment/lower inflation expectations: Reduces inflation risk, gives the Fed more flexibility to ease if needed.
5. Construction Spending
Higher than forecast: Indicates resilient investment and demand in the real economy.
Lower than forecast: Suggests cooling real estate and infrastructure spending; may support a dovish Fed outlook if sustained.
Summary Table
Data Surprises Interpretation for Fed Policy
Higher-than-forecast More hawkish; raises risk of persistent inflation
Lower-than-forecast More dovish; reduces pressure to hold rates higher
The Fed looks at the overall pattern across these data. Persistent upside surprises heighten concerns about inflation, supporting tighter policy. Downside surprises suggest cooling economic momentum and may encourage future rate cuts or pauses. The relative impact depends on which indicators surprise and the broader economic context.
#DXY #DOLLAR
U.S. Dollar Index (DXY) Technical Analysis – 4-Hour TimeframeU.S. Dollar Index (DXY) Technical Analysis – 4-Hour Timeframe
Following yesterday’s economic data from the United States, which included stronger-than-expected GDP growth and consumer confidence figures, the U.S. Dollar Index (DXY) has continued its upward trend with strength. These developments have reinforced expectations for continued monetary tightening—or at least keeping interest rates elevated—which in turn has boosted demand for the dollar.
On the 4-hour chart, after a strong bullish rally, the dollar index has now reached a key resistance zone that previously acted as a major barrier.
Bullish Scenario:
If the current resistance zone is decisively broken and price stabilizes above it, the bullish momentum could extend further toward higher technical levels. This scenario would gain additional strength if upcoming economic data continues to support the dollar.
Bearish Scenario:
However, if the price fails to break through the resistance and signs of buyer weakness begin to emerge, a corrective pullback toward previous support levels may occur. This scenario could be further intensified if weaker economic data is released or if the Federal Reserve signals a more dovish stance.
At the moment, traders are advised to closely monitor the price reaction to the current zone and wait for confirmation before committing to the next move.
Bearish reversal off overlap resistance?The US Dollar Index (DXY) is rising towards the pivot and could reverse to the 1st support.
Pivot: 100.23
1st Support: 99.29
1st Resistance: 101.09
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Disclaimer:
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DXY bullish trend The market reaction indicates that the economy remains very strong, and there is no immediate need for the Fed or any central bank action. Powell emphasized that any potential rate cuts will depend on the upcoming data, especially the August reports. As a result, the DXY is expected to remain strong and could rise towards the 104.00–106.00 levels. A potential bearish reversal in the DXY would only be likely if there is significant economic deterioration or a clear shift in Fed policy expectations.
The strength of the PMI reportWe all saw how a large and strong candle formed right after the news, hitting the top of the previous channel.
So now that channel top zone has proven to be valid.
Now we have to see whether this candle leads to another drop in the dollar, or if the dollar recovers and slowly starts moving back toward 100.
Technical Analysis of the US Dollar Index (DXY) | 4-Hour Timefr🟢 Technical Analysis of the US Dollar Index (DXY) | 4-Hour Timeframe
On the 4-hour chart, the US Dollar Index has recently formed a Drop-Base-Drop (DBD) structure and is now positioned on a significant support level. This area can play a critical role in traders' decision-making for the next move.
✅ Current Situation:
After the initial drop, the price entered a short-term base/consolidation phase, then continued its decline and is now testing a demand zone (support). In this structure, two potential scenarios are worth considering:
🔼 Bullish Scenario:
If the price reacts positively to this support zone:
A rebound toward previous supply areas is likely.
Holding above the first resistance could indicate a temporary or even long-term trend reversal.
This level may provide a low-risk entry opportunity for buyers targeting a reversal.
🔽 Bearish Scenario:
If selling pressure continues and the current support breaks:
A further drop as part of a third wave (impulse) may unfold.
Lower support zones would become the next target areas for sellers.
Breakout from the channel again?After a long period of ranging, the DXY finally managed to break the range's ceiling last week and even gave us a channel confirmation afterward. But if you remember, there were several major news events last week, with the last one on Friday causing the price to fall back into the range. Now we can see that an ascending channel has formed inside the range, and the price is currently at the bottom of that channel. If it manages to break out of the channel again, there’s a chance that this time the trend might truly reverse.
DXY (USDX): Trend in daily time frameThe color levels are very accurate levels of support and resistance in different time frames, and we have to wait for their reaction in these areas.
So, Please pay special attention to the very accurate trend, colored levels, and you must know that SETUP is very sensitive.
(((((we have two trend)))))
BEST,
MT
DXY is testing the descending trend line, breakout happening? The US dollar firmed as Trump's escalating tariff threats, from pharma to Indian exports, amplified trade tensions and boosted safe-haven flows. Despite rising global uncertainty, optimism over a possible US-China trade truce extension and a sharply narrower trade deficit also underpinned dollar strength.
DXY retreated below the descending trend line and the ascending channel's upper bound. The price is consolidating below the 100.00 psychological resistance, which aligns with the 23.6% Fibonacci Retracement. A rebound from the support at 98.00, in line with the ascending channel's lower bound, could prompt a retest of the channel's resistance, paving the way for further gains toward the 38.2% Fibonacci Retracement and 102.00 resistance, upon breaking 100.00. Conversely, a bearish breakout of the channel and close below the 98.00 support could prompt a further decline toward the following support at 97.00.
By Li Xing Gan, Financial Markets Strategist Consultant to Exness