Dollar Index Bearish to $96The DXY has been in a downtrend for a while & that bearish pressure is not over yet. I expect more bearish downside towards the $96 zone, before we can re-analyse the market for any signs of bullish takeover.
⭕️Major Wave 3 Impulse Move Complete.
⭕️Major Wave 4 Corrective Move Complete.
⭕️Minor 4 Waves of Major Wave 5 Complete, With Minor Wave 5 Yet Pending.
DOLLARINDEX trade ideas
USD Index preparing for fresh YTD lows?As shown on the daily chart of the USD Index, the currency has been biased to the downside for most of this year and recently met with 1M support at 96.80. This has caused the Index to modestly rebound and retest a 6M resistance at 97.39. Given this level's significance and trend direction, sellers could show from 97.39 and refresh year-to-date lows towards 1Y support at 95.67.
- FP Markets Research Team
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
Why I haven't posted this week:Hey all,
So, for those of you who watches my videos and market commentary will have noticed that I haven't posted anything this week, event though there were some awesome opportunities to highlight and discuss.
The reason for this is because I am currently conducting work training and was unable to record, however, rest assured that I'll be back next week to break down these markets with you and take advantage of the opportunities lining up.
Up until then keep well and bye for now
The Bessent Effect Explained: Weaken the Dollar The Bessent Effect Explained: Weaken the Dollar
There’s no coincidence that the U.S. dollar has had its worst first half of the year since the dawn of free-floating currencies in the 1970s. And if anyone knows how currencies tick — or unravel — it’s Scott Bessent, the man who once stood behind George Soros during the legendary short of the British pound in 1992. Now, three decades later, Bessent sits at the helm of the most powerful economy in the world, steering the U.S. Treasury through a historic moment: where America is trying to boost exports, undercut foreign currency manipulation, and lighten the crushing weight of debt — all while keeping inflation from boiling over.
Of course, no Treasury Secretary will ever say “we want a weaker dollar”, but if one wanted to do it strategically, they'd need to be part economist, part hedge fund manager and part illusionist.
Enter: The Bessent Effect.
📊 Charting the Decline
• After Election Day (BLUE LINE), the DXY marched upward, peaking near 109 — a reflection of market optimism or a dash of geopolitical anxiety.
• By Inauguration Day (REDLINE), that trend began to unwind. Investors started to squint at the fiscal roadmap and didn't love what they saw.
________________________________________
Debt Strategy Rhetoric: PURPLE LINE
In early February, Treasury Secretary Scott Bessent addressed the U.S. debt issuance strategy. While he openly criticized his predecessor’s reliance on short-term debt, his first major move was paradoxical: he continued that very approach, opting to maintain a heavy focus on short-term issuance while holding off on extending maturities. This subtle decision screamed one thing for markets: rollover risk. What if rates stay high? What if inflation persists? What if buyers disappear?
Result? The dollar started sliding faster.
________________________________________
Liberation Day: YELLOW LINE
On April 2, “Liberation Day” tariffs were announced. Potential retaliation from China and Mexico, and now you've got cross-border chaos. Trade wars spook global markets, slash demand for U.S. assets, and drive capital into gold and foreign currencies. The dollar’s dominance doesn’t vanish overnight — but the cracks begin to show.
________________________________________
Easing of SLR Announced: PINK LINE
On May 23, just when the DXY needed a break, Bessent went on Bloomberg and said, “We are very close to moving” on the Supplementary Leverage Ratio (SLR). Translation? Banks may soon face eased capital rules, making it easier for them to buy Treasuries.
Markets took it as regulatory backdoor stimulus — a shadowy workaround to support Treasury demand without triggering money printers. But it also raised fears about systemic risk, inflation, and policy overreach. The DXY barely blinked before continuing its methodical march lower.
________________________________________
But What If...
What if Bessent’s moves aren’t missteps, but part of a calculated devaluation strategy? A weaker dollar makes U.S. exports more competitive, revives domestic manufacturing, and reshapes global trade dynamics. By subtly bending the rules (instead of breaking them), Bessent may be re-engineering the dollar's role—less as a global anchor, more as a tool for national advantage. By easing the SLR, he may have discovered a subtle way to bring down the long end of the yield curve.
If it’s not currency destruction. Maybe it’s precision macro strategy?
________________________________________
What’s Next?
Sure, the DXY might bounce a little — even bad news needs a break. But what could drive it even lower?
How about the loss of Federal Reserve independence?
Luckily, that’d only happen if there were whispers of a “shadow Fed chair” waiting in the wings. But that’s just conspiracy talk... right?
Follow on X: @TheAlphaView
just slightly kidding, yes or no DXY MONTHLYjust slightly kidding, yes or no DXY MONTHLY\
bullish. so very bullish
let us know!
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U.S. dollar index DXY analysis- daily time frame ✅ U.S. Dollar Index (DXY) Analysis — Daily Timeframe
👤 A TVC:DXY trader’s perspective:
When I look at this chart, several key points immediately stand out:
1️⃣ Long-Term Trend
On the weekly and daily timeframe, the major trend has turned bearish after peaking around 114. We see a clear series of lower highs and lower lows confirming the downtrend.
The sharp rally from 89 to 114 in the past was a strong impulsive move, which is now undergoing a deep correction. Currently, price is hovering around a major historical support near 96.
2️⃣ Key Support Zone
The current price near 96.7 is sitting right at a significant support area that has triggered considerable buying interest in the past.
If this support decisively breaks, the green zone marked as DD (around 93–95) represents a strong long-term demand zone and will likely be the next liquidity target for buyers.
3️⃣ Resistance (Supply Zones)
The four red-marked 4HR zones between 97 and 101.9 clearly show significant supply zones where sellers have stepped in on lower timeframes.
Should the price attempt a bounce from current levels, these resistance areas may act as a strong barrier to further upside.
4️⃣ Price Structure and Liquidity
Looking more closely, the market seems to be moving from a consolidation phase toward lower support liquidity. That means there is a high probability of a liquidity grab toward the 93–95 area before a potential fresh bullish leg.
At higher levels, unless the price can break and hold above 98 and then 100, we cannot confirm a trend reversal.
🔹 Summary
✅ Overall downtrend remains dominant
✅ 96–97 is a critical support zone
✅ A break below this support targets 93–95
✅ Trend reversal only possible with a confirmed break and hold above 98, and then 100–101
✅ The 4HR resistance zones (97–101) are strong hurdles for any bullish retracement
✅ As long as price remains below 98, any rally is likely just a corrective move
⚠️ Disclaimer: This analysis is for educational and informational purposes only and does not constitute financial advice or a recommendation to buy or sell. All trading decisions are solely your own responsibility.
DXY LONG 03/07/2025Here we have the DXY hitting the resistance of a multi-year confirmed tunnel, while the down trend seems very strong, and can break trough some more to the downside, its a good spot to start picking up some UUP stocks, I belive price will eventually break and hit the 93 price mark, will make a double bottom and run back up inside the channel.
Good luck
DXY Long-Term Technical Outlook: Channel Structure, Pullbacks & ## **DXY (Dollar Index) Technical Analysis – 2W Chart**
### **1. Uptrend Since 2008**
The Dollar Index (DXY) has been in a **long-term uptrend** since the 2008 bottom (around 70.70). The chart shows a clear pattern of **higher highs and higher lows**, establishing a bullish market structure over the past 15+ years.
---
### **2. Ascending Channel**
The price has been moving consistently within a well-defined **ascending channel**. Several reactions from the channel boundaries are visible:
- **Support (lower trendline):** 2008, 2011, 2018, 2021, 2024
- **Resistance (upper trendline):** 2009, 2017, 2022
This suggests that the market is respecting the technical boundaries of the channel remarkably well.
---
### **3. Historical Pullbacks Within the Channel (13.5% – 15%)**
The chart highlights major **pullbacks** from local tops, all falling within the **-12.6% to -16.9%** range, showing high consistency:
| Year | Drop | % Decline |
|-------------|----------|----------------|
| 2009 | -14.76 | -16.47% |
| 2010 | -14.97 | -16.90% |
| 2017 | -15.17 | -14.61% |
| 2020 | -13.65 | -13.25% |
| 2022 | -14.90 | -12.98% |
| 2024/2025 | -13.90 | -12.61% |
This implies that **a retracement of 13–15%** from a local high is a historically "normal" correction within the ongoing uptrend.
---
### **4. EMA Analysis – 24, 120, 240** (2Y,5Y,10Y)
The chart includes three Exponential Moving Averages (EMAs), reflecting short-, medium-, and long-term trends:
- **EMA 24 (white line):** Reacts to short-term price action. Price is currently breaking below it, suggesting weakness in short-term momentum.
- **EMA 120 (red line):** Reflects the mid-term trend. Price is **right at the edge**, often acting as a **support level** in bullish markets.
- **EMA 240 (blue line):** Represents the long-term outlook. **Price has never stayed below this level for long** over the past 15 years, making this EMA a **critical support** for the long-term trend.
---
### **Conclusion & Potential Scenarios**
📉 **Bearish Scenario:**
If DXY breaks below the **EMA 240** and the **lower channel boundary**, it could indicate a **reversal of the long-term uptrend**, which hasn’t happened since 2008.
📈 **Bullish Scenario:**
If DXY holds above the **EMA 120** or bounces from the **EMA 240** and the **channel support**, we could expect a rally toward the **Fibonacci levels** (0.5 at 102.04 or 0.382 at 105.04), or even a retest of the highs around **114.78**.
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🎯 Wait for price to break above Resistance @ 99.000 and candle to close ✅
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🧠 Use 4H swing low at 98.100 as SL
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💰 First Exit Target: 100.000
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🌐 MARKET OUTLOOK: WHY THE VAULT’S OPENING
💡 Currently seeing bullish momentum in the DXY
📈 Driven by macroeconomics, sentiment shifts, and intermarket pressure
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DXY Short-term rebound quite likely.The U.S. Dollar index (DXY) has been trading within almost a 3-year Channel Down, which has assisted us in choosing the right levels to sell high and buy low.
Despite being now on its 2nd major Bearish Leg, we see a short-term bounce possibly up to August quite likely based on the previous major Bearish Leg. As you see, the current setup resembles the April 13 023 Low after which the price rebounded short-term just above the 0.786 Fibonacci level, only to get rejected later and complete the bottom on the 1.1 Fib extension.
Even the 1W RSI sequences between the two fractals are identical. Therefore, before diving below 96.000, we believe a 100.000 test is quite likely.
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Bearish drop?US Dollar Index (DXY) has reacted off the pivot and could drop to the 1st support.
Pivot: 98.59
1st Support: 97.69
1st Resistance: 99.25
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I dare say, DXY has bottomed, only higher from now on!This is the low on DXY. It can range from here or glide up slowly.
DXY is predictable this year because Trump is unpredictable. Causing the market to just repeat history. Check DXY on 2017
Conservative traders can wait for 4hrs close before entering.
The SL and TP are outlined on the chart.
Enjoy
DOLLAR INDEX the US Dollar Index (DXY) is trading around 97.704 -98.572,0.34% . The index has been under pressure due to easing geopolitical tensions ,Particularly optimism about a ceasefire between Israel and Iran and expectations of Federal Reserve rate cuts later in the year. The DXY remains below its 100-day,200 day exponential moving average (EMA), 100day, 200 day simple moving average with bearish momentum supported by interest rate hold and expected rate cut before the end of the year.
the 10 year united states bond yield is trading around 4.279%-4.324%,we have seen gold sell off at 3336-3334 on dollar rally.
Market Outlook:
The DXY is attempting to stabilize but remains in a bearish phase until it decisively breaks above 100 resistance.
the future of the dollar index is depending on Fed policy and global economic conditions.
Summary:
The DXY is currently weak around 97.88 -98.00 due to easing geopolitical risks and Fed rate cut expectations.
Bearish momentum dominates below the 100-day EMA, 200-day EMA, 100-day SMA AND 200 day SMA
A break above 100 would be needed to signal a bullish reversal, if the retest to broken supply at 100 could become demand floor .
#dxy