DXY trade ideas
DXYT BUBBLES THROUGH 103.000'S .. The DXY completes its bearish sweep and is now reacting to a substantial demand zone around the 97.000s, prompting a potential pullback toward the 103.000s. Simultaneously, the gold market faces renewed supply pressure in alignment with fundamental drivers. Market participants should anticipate corrective moves across both assets. Follow for more insights , comment , and boost idea .
US Dollar Into Resistance on China Tariff Agreement- First TestNews of a preliminary trade agreement between the U.S. and China fueled a rally of more than 1.1% in the US Dollar with the index surging into confluent downtrend resistance today at 101.77/92 - a region defined by the objective September high and the high-day close (HDC). A topside breach / close above this threshold is needed to suggest a more significant low was registered last month / invalidate the February downtrend.
Near-term bullish invalidation now raised to 99.96 with a breach here exposing 102.95/99 and the 200-day moving average into 104.04/30 . Keep in mind we have U.S. CPI on tap tomorrow. Review my latest US Dollar Short-term Outlook for a closer look at the near-term DXY technical trade levels.
-MB
DXY: Strong Growth Ahead! Long!
My dear friends,
Today we will analyse DXY together☺️
The price is near a wide key level
and the pair is approaching a significant decision level of 100.977 Therefore, a strong bullish reaction here could determine the next move up.We will watch for a confirmation candle, and then target the next key level of 101.548.Recommend Stop-loss is beyond the current level.
❤️Sending you lots of Love and Hugs❤️
DXY Has More To The UpsideDXY is right now in what I believe to be a 4th wave correction, which has turned into a wxy, and probably also will turn into a WXYXZ.
It has plenty of room to develop.
Since 4th wave corrections has a tendency to enter the area of the 4th wave of previous impulse, it will most likely go up to the area of the green rectangle above.
This will be between 103.2 - 104,7.
If it will go further up before heading down is to early to say.
But my previous forecast about it will go down below 96 is still in play and intact.
DXY is entering the Smart Money play — Are you ready Temporary selling pressure is unfolding, but a powerful bullish reversal zone is on the horizon! Don’t miss this key USD cycle setup
The US Dollar Index (DXY) is currently breaking down for a temporary selling phase, approaching a high-probability demand zone between 96.40–98.00.
According to the Smart Money Concept, institutional players are clearing liquidity before driving price back towards the higher supply zone (106–110).
Key Insights:
– Temporary Sell-Off: Price is moving toward the demand zone
– Bullish Reversal Expected: Watch for signs of accumulation around 96.40–98.00
– Next Target: Supply zone near 106+ levels
– Strategy: Monitor for bullish confirmation before longing
Stay ahead with clean Smart Money setups —
DOLLARThe Federal Reserve’s FOMC meeting on May 7, 2025, resulted in the decision to hold the federal funds rate steady at 4.25% to 4.50%, maintaining the current policy stance amid rising economic uncertainty primarily driven by trade tensions and tariff impacts.
Key Points from the FOMC Decision and Statement:
The Fed acknowledged that economic activity continues to expand at a solid pace, with the labor market remaining strong and unemployment stable at low levels.
Inflation remains somewhat elevated, with core inflation around 2.6%.
The Committee highlighted increased uncertainty about the economic outlook, especially due to the effects of President Trump’s tariffs, which could raise both inflation and unemployment risks.
The Fed is taking a data-dependent, wait-and-see approach, prepared to adjust policy as needed based on incoming economic information.
The Fed continues to reduce its holdings of Treasury and mortgage-backed securities as part of monetary policy normalization.
Chair Jerome Powell emphasized that the Fed does not plan preemptive rate cuts and will monitor how tariffs affect inflation and growth before making further moves.
Market and Economic Context:
Despite President Trump’s calls for rate cuts to stimulate growth amid tariff pressures, the Fed resisted, citing the need to balance its dual mandate of maximum employment and price stability.
The Fed noted the risk of stagflation-a combination of slowing growth and rising inflation-due to tariff-induced supply chain disruptions and pricing pressures.
Market expectations shifted after the meeting, with traders now pricing in a lower probability of near-term rate cuts, pushing the first likely cut to July or later in 2025
Summary of Geopolitical and Economic Risks Impacting the Fed’s Decision:
Trade tensions and tariffs between the U.S. and China remain a major source of uncertainty, affecting business confidence, supply chains, and inflation dynamics.
Inflation pressures from tariffs and supply disruptions complicate the Fed’s inflation targeting.
Labor market strength provides some support for the economy, but downside risks from trade policies are growing.
The Fed is navigating a delicate balance between controlling inflation and avoiding a sharp economic slowdown or rise in unemployment.
In brief:
The Fed’s decision to hold rates steady reflects caution amid mixed economic signals and geopolitical uncertainty, especially tariff-related risks. The central bank remains vigilant, ready to adjust policy as clearer data emerge on inflation, employment, and growth impacts from trade policies.
Impact on the US Dollar
The dollar stabilized and experienced a slight "micro bounce" ahead of the Fed meeting, partly due to optimism about upcoming U.S.-China trade talks.
However, broad skepticism remains about the dollar’s strength amid economic uncertainty and ongoing capital outflows from U.S. assets by major Asian investors.
Market consensus expects the dollar’s longer-term weakness to persist, as investors weigh the risks of slower growth and tariff-related disruptions.
Impact on Bond Markets
The Fed’s steady rate decision and cautious outlook have led to flattening or modest declines in Treasury yields, as investors price in delayed rate cuts and economic slowdown risks.
Uncertainty about trade policy and inflation is keeping bond markets volatile, with investors seeking safe-haven assets amid stagflation concerns.
Impact on Gold Prices
Gold prices have been supported by safe-haven demand amid geopolitical and trade tensions, rising inflation concerns, and a weaker dollar environment.
The Fed’s decision to hold rates steady without signaling imminent cuts keeps real yields low or negative, which is bullish for gold.
Tariff-related inflation and geopolitical risks (including U.S.-China tensions, Taiwan conflict risks, and Middle East instability) continue to underpin gold’s appeal as a hedge.
DOLLARThe Federal Reserve’s FOMC meeting on May 7, 2025, resulted in the decision to hold the federal funds rate steady at 4.25% to 4.50%, maintaining the current policy stance amid rising economic uncertainty primarily driven by trade tensions and tariff impacts.
Key Points from the FOMC Decision and Statement:
The Fed acknowledged that economic activity continues to expand at a solid pace, with the labor market remaining strong and unemployment stable at low levels.
Inflation remains somewhat elevated, with core inflation around 2.6%.
The Committee highlighted increased uncertainty about the economic outlook, especially due to the effects of President Trump’s tariffs, which could raise both inflation and unemployment risks.
The Fed is taking a data-dependent, wait-and-see approach, prepared to adjust policy as needed based on incoming economic information.
The Fed continues to reduce its holdings of Treasury and mortgage-backed securities as part of monetary policy normalization.
Chair Jerome Powell emphasized that the Fed does not plan preemptive rate cuts and will monitor how tariffs affect inflation and growth before making further moves.
Market and Economic Context:
Despite President Trump’s calls for rate cuts to stimulate growth amid tariff pressures, the Fed resisted, citing the need to balance its dual mandate of maximum employment and price stability.
The Fed noted the risk of stagflation-a combination of slowing growth and rising inflation-due to tariff-induced supply chain disruptions and pricing pressures.
Market expectations shifted after the meeting, with traders now pricing in a lower probability of near-term rate cuts, pushing the first likely cut to July or later in 2025
Summary of Geopolitical and Economic Risks Impacting the Fed’s Decision:
Trade tensions and tariffs between the U.S. and China remain a major source of uncertainty, affecting business confidence, supply chains, and inflation dynamics.
Inflation pressures from tariffs and supply disruptions complicate the Fed’s inflation targeting.
Labor market strength provides some support for the economy, but downside risks from trade policies are growing.
The Fed is navigating a delicate balance between controlling inflation and avoiding a sharp economic slowdown or rise in unemployment.
In brief:
The Fed’s decision to hold rates steady reflects caution amid mixed economic signals and geopolitical uncertainty, especially tariff-related risks. The central bank remains vigilant, ready to adjust policy as clearer data emerge on inflation, employment, and growth impacts from trade policies.
Impact on the US Dollar
The dollar stabilized and experienced a slight "micro bounce" ahead of the Fed meeting, partly due to optimism about upcoming U.S.-China trade talks.
However, broad skepticism remains about the dollar’s strength amid economic uncertainty and ongoing capital outflows from U.S. assets by major Asian investors.
Market consensus expects the dollar’s longer-term weakness to persist, as investors weigh the risks of slower growth and tariff-related disruptions.
Impact on Bond Markets
The Fed’s steady rate decision and cautious outlook have led to flattening or modest declines in Treasury yields, as investors price in delayed rate cuts and economic slowdown risks.
Uncertainty about trade policy and inflation is keeping bond markets volatile, with investors seeking safe-haven assets amid stagflation concerns.
Impact on Gold Prices
Gold prices have been supported by safe-haven demand amid geopolitical and trade tensions, rising inflation concerns, and a weaker dollar environment.
The Fed’s decision to hold rates steady without signaling imminent cuts keeps real yields low or negative, which is bullish for gold.
Tariff-related inflation and geopolitical risks (including U.S.-China tensions, Taiwan conflict risks, and Middle East instability) continue to underpin gold’s appeal as a hedge.
USD is Bearish, SO BUY EUR, GBP, AUD, NZD CHF & JPY!In this video, we will update Saturday's forecasts mid-week, and look for valid setup for the rest of the week ahead. The following FX markets will be analyzed:
USD Index
EURUSD
GBPUSD
AUDUSD
NZDUSD
USDCAD
USDCHF
USDJPY
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Disclaimer:
I do not provide personal investment advice and I am not a qualified licensed investment advisor.
All information found here, including any ideas, opinions, views, predictions, forecasts, commentaries, suggestions, expressed or implied herein, are for informational, entertainment or educational purposes only and should not be construed as personal investment advice. While the information provided is believed to be accurate, it may include errors or inaccuracies.
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Conduct your own due diligence, or consult a licensed financial advisor or broker before making any and all investment decisions. Any investments, trades, speculations, or decisions made on the basis of any information found on this channel, expressed or implied herein, are committed at your own risk, financial or other wise. In this video, we will update the forecasts for the following FX markets:
DXY Bullish scenario (Daily)Dxy is still respecting the market maker buy model idea.
Monday traded inside friday range.
Today (Tuesday) price already traded above monday previous high signaling bullish momentum and a higher probability to trade also above friday high.
Right now price is consolidating between a daily bullish fair value gap and a bearish daily volume imbalance.
With the information we have, price is likelly to shop arround with no clear direction before FOMC.
For the current week price is still in the manipulation phase.
Traders will find higher probability trades after FOMC.