US DOLLAR INDEX(DXY): Classic Bearish SetupI believe that 📉DOLLAR INDEX has a potential to continue falling.
The market has been consolidating in a wide intraday horizontal range, and the breakout below the range support is a significant bearish indicator.
Target levels are 98.08 then 97.80 support.
USDX trade ideas
DXY Ready to Reload? Eyes on 99.100 as Tariff Tensions Ease!!Hey Traders, In tomorrow's trading session, we're closely monitoring the DXY for a potential buying opportunity around the 99.100 zone. After trending lower for a while, the dollar index has successfully broken out of its downtrend and is now entering a corrective phase.
We’re watching the 99.100 support/resistance area closely, as it aligns with a key retracement level making it a strong candidate for a bullish reaction.
On the fundamental side, Friday's NFP data came in slightly above expectations, which is typically USD-positive. In addition, recent Trump-led de-escalation in U.S.-China tariff tensions is another supportive factor for the dollar.
Trade safe, Joe.
Stuck in the Zone: DXY Tests Balance Between 98 and 99Hello Traders,
After a sharp and uninterrupted decline in the DXY, price found support at the 97.921 level. Sellers then regained control from the weekly bearish Fair Value Gap (W-FVG), pushing price back into the 99 zone.
In this zone, neither sellers nor buyers have managed to assert dominance—suggesting that these levels may act as a pause or balance point. Given the extended drop, a temporary correction could follow if buyers gain traction after one last push.
For now, the bearish USD narrative remains intact. With upcoming catalysts like China/US talks and tomorrow’s CPI release, a renewed move toward 98 is likely to accelerate.
Whether this leads to further selling or a corrective phase will be assessed afterward.
Reversal pattern on DXYPrice entered into the 12 months Fair value gap the second time and took out the old low there. This is called stop hunt, which is particularly significant because it happened inside a Higher timeframe Fair value gap. After this stop hunt came an invalidation of a Fair value gap (BISI). This price signinature cause the reversal of price ultimately... it is noteworthy that price had spent more than a month in the 12 Month Fair value gap. It is worth trading
Short Term USD Strength This Week! Sell The Majors?This is the FOREX futures outlook for the week of Jun 8 - 12th.
In this video, we will analyze the following FX markets:
USD Index, EUR, GBP, AUD, NZD, CAD, CHF, and JPY.
USD gained some strength on Friday's job data. Talks with China this week may add to it. But I believe the bullishness will be short term.
Look for valid sells in EUR and GBP. Be cautious with AUD and NZD. CAD and CHF will also offer opportunities to sells.
CPI Data due Wed, making that day and the days that follow potentially the best trading days this week.
Enjoy!
May profits be upon you.
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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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Bullish bounce?US Dollar Index (DXY) has bounced off the pivot which lines up with the 50% Fibonacci retracement and could rise to the 1st resistance.
Pivot: 98.91
1st Support: 98.36
1st Resistance: 99.60
Risk Warning:
Trading Forex and CFDs carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Forex and CFDs may not be suitable for all investors, so please ensure that you fully understand the risks involved and seek independent advice if necessary.
Disclaimer:
The above opinions given constitute general market commentary, and do not constitute the opinion or advice of IC Markets or any form of personal or investment advice.
Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, are intended only to be informative, is not an advice nor a recommendation, nor research, or a record of our trading prices, or an offer of, or solicitation for a transaction in any financial instrument and thus should not be treated as such. The information provided does not involve any specific investment objectives, financial situation and needs of any specific person who may receive it. Please be aware, that past performance is not a reliable indicator of future performance and/or results. Past Performance or Forward-looking scenarios based upon the reasonable beliefs of the third-party provider are not a guarantee of future performance. Actual results may differ materially from those anticipated in forward-looking or past performance statements. IC Markets makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or any information supplied by any third-party.
DXY Will Grow! Long!
Here is our detailed technical review for DXY.
Time Frame: 2h
Current Trend: Bullish
Sentiment: Oversold (based on 7-period RSI)
Forecast: Bullish
The market is trading around a solid horizontal structure 98.198.
The above observations make me that the market will inevitably achieve 98.620 level.
P.S
Please, note that an oversold/overbought condition can last for a long time, and therefore being oversold/overbought doesn't mean a price rally will come soon, or at all.
Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
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DXY Support Ahead! Buy!
Hello,Traders!
DXY keeps going down
But the strong horizontal
Support is ahead around 98.000
So after the price hit the level
We will be expecting a
Local rebound and a move up
Buy!
Comment and subscribe to help us grow!
Check out other forecasts below too!
Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
Dollar Falling Ends Soon? Look What Pattern Is Forming!”Asset: U.S. Dollar Index (DXY)
Timeframe: 1D (Daily Chart)
Methodology: Elliott Wave + FVG (Fair Value Gap) + Price Action
DXY has completed an impulsive 5-wave bearish structure, now entering a high-probability reversal zone marked by strong buyer interest around the Wave 5 bottom.
📌 Key Insights:
Wave 5 approaching demand zone (Buyers' area)
Price inside Fair Value Gap (FVG) – potential order block
Bullish reversal expected from here
Forecast: A breakout into an ascending channel, confirming reversal
💡 If Wave 5 holds, we may see a sharp upside rally aligning with smart money accumulation + Elliott Wave psychology.
🔔 Watch for bullish confirmations near 97.50–98.00 for a potential long setup targeting the 104–107 zone.
CRYPTO CORRELATION WITH DXYThe U.S. Dollar Index (DXY) is probing 99-100—the same lower-rail support of its 14-year ascending channel that caught the 2011, 2015 and 2021 inflection points and launched the 2016 and 2022 dollar surges
macrotrends.net
forex.com
. History shows that when the dollar sinks beneath this zone (April 2017 and June 2020) Bitcoin has ripped 10-fold or more within months
cointelegraph.com
, whereas a sharp bounce from here (September 2022 above 110) coincided with BTC’s plunge to the cycle low near $16 k
forex.com
coindesk.com
. The macro backdrop currently favours at least a reflex rally: the Fed’s latest survey and dot-plot point to “higher-for-longer” policy with only two cuts pencilled in for 2025
reuters.com
finance.yahoo.com
, 10-year Treasuries still yield about 4.7 %—a near-cycle high that supports dollar carry demand
wsj.com
, and U.S. growth has just been revised up to 2.7 % for 2025 while euro-area PMIs languish in contraction and the ECB is already easing
mdm.com
ecb.europa.eu
. Add in lingering negative BTC-DXY correlation metrics
coindesk.com
and the structural importance of the psychologically charged 100 level, and this pivot becomes a practical timing gauge: a sustained break below 99 would clear the way for the next broad crypto bull-phase, whereas a confirmed dollar rebound warns that any exuberance in digital assets could mark a cyclical top.
U.S. Dollar Index (DXY) Weekly 2025Summary:
The U.S. Dollar Index (DXY) has corrected down to the key 38.60% Fibonacci retracement zone and is currently showing signs of a potential bullish reversal, bolstered by a clear hidden bullish divergence on the MACD. This may signal a renewed rally toward key upside targets, especially if the 93.3–99.9 support Zone holds.
Chart Context:
Current Price: 98.864
Key Fib Support: 38.60% @ 99.906, 48.60% @ 93.310, 61.80% @ 87.476
Support Zone: 93.3–99.9 USD
Hidden Bullish Divergence: Observed both in 2021 and now again in 2025 on the MACD
Trendline Support: Long-term ascending trendline holding since 2011
Fib Extension Targets (Trend-Based):
TP1: 115.000
TP2: 120.000
TP3: 126.666
Key Technical Observations:
Fibonacci Confluence: DXY is bouncing from a strong Fib cluster between 93.310 and 99.906, historically acting as a reversal zone.
Hidden Bullish Divergence: Suggests potential upside despite price weakness.
Downtrend Retest: Price may revisit 93.3–87.4 before confirming full reversal.
Breakout Pathway: Green dashed arrows outline the likely recovery trajectory toward 114–126 range.
Indicators:
MACD: Showing hidden bullish divergence and potential signal crossover.
Trendline Support: Holding intact from 2021 low.
Fib Levels: Used for retracement and trend-based extension.
Fundamental Context:
Interest Rate Outlook: If U.S. inflation remains controlled and Fed signals future hikes or sustained high rates, DXY strength may persist.
Global Liquidity & Recession Risk: If risk aversion returns, the dollar may rise as a safe haven.
Geopolitical Risks: Conflicts, trade tensions, or BRICS dedollarization efforts may create volatility.
Our Recent research suggests the Fed may maintain higher-for-longer rates due to resilient labor markets and sticky core inflation. This supports bullish USD bias unless macro shifts rapidly.
Why DXY Could Continue Strengthening:
Robust U.S. economic performance & monetary policy divergence
U.S. GDP growth (~2.7% in 2024) outpaces developed peers (~1.7%), supporting stronger USD
The Fed maintains restrictive rates (4.25–4.50%), while the ECB pivots to easing, widening the policy and yield gap .
Inflation resilience and Fed hawkishness
Labor markets remain tight, keeping inflation “sticky” and delaying expected rate cuts; market-implied cuts for 2025 have been pushed into 2026
Fed officials (e.g. Kugler) emphasize ongoing tariff-driven inflation, suggesting rates will stay elevated.
Safe-haven and yield-seeking capital flows
With global risks, capital favors USD-denominated assets for yield and stability
Why the Dollar Might Face Headwinds
Fiscal expansion & trade uncertainty
Ballooning U.S. deficits (~$3.3 trn new debt) and erratic tariff policy undermine confidence in USD
Wall Street’s consensus bearish position.
Major banks largely expect a weaker dollar through 2025–26. However, this crowded bearish sentiment poses a risk of a sharp rebound if data surprises occur
barons
Tariff policy risks
Trump's new tariffs could dampen dollar demand—yet if perceived as fiscal stimulus, they could unexpectedly buoy the USD .
Synthesis for Our Biases
A bullish DXY thesis is well-supported by:
Economic and policy divergence (U.S. growth + Fed vs. peers).
Hawkish Fed commentary and sticky inflation.
Safe-haven capital inflows.
Conversely, risks include:
Deteriorating fiscal/trade dynamics.
Potential Fed pivot once inflation shows clear decline.
A consensus that could trigger a short squeeze or reversal if overstretched.
Philosophical / Narrative View:
The dollar remains the world’s dominant reserve currency. Periodic dips often act as strategic re-accumulation phases for institutional capital—especially during global macro uncertainty. A return toward 120+ reflects this persistent demand for USD liquidity and safety.
Bias & Strategy Implication:
1. Primary Bias: Bullish, contingent on support at 93.3–99.9 holding.
2. Risk Scenario: Breakdown below 93.3 invalidates bullish thesis and targets 87.4–80 zones.
Impact on Crypto & Gold and its Correlation and Scenarios:
Historically, DXY has had an inverse correlation to both gold and crypto markets. When DXY strengthens, liquidity tends to rotate into dollar-denominated assets and away from risk-on trades like crypto and gold. When DXY weakens, it typically acts as a tailwind for both Bitcoin and gold.
Correlation Coefficients:
DXY vs. Gold: ≈ -0.85 (strong inverse correlation)
DXY vs. TOTAL (crypto market cap): ≈ -0.72 (moderate to strong inverse correlation)
Scenario 1: DXY Rallies toward 115–126 then, Expect gold to correct or stagnate, especially if yields rise. Crypto likely to pull back or remain suppressed unless specific bullish catalysts emerge (e.g., ETF flows or tech adoption).
Scenario 2: DXY ranges between 93–105 then Gold may consolidate or form bullish continuation patterns. Then Crypto may see selective strength, particularly altcoins, if BTC.D declines.
Scenario 3: DXY falls below 93 and toward 87 Then Gold likely to rally, possibly challenging all-time highs. Crypto could enter a major bull run, led by Bitcoin and followed by altcoins, fueled by increased liquidity and lower opportunity cost of holding non-USD assets.
Understanding DXY’s direction provides valuable insight for portfolio positioning in macro-sensitive assets.
Notes & Disclaimers:
This analysis reflects a technical interpretation of the DXY index and is not financial advice. Market conditions may change based on unexpected macroeconomic events, Fed policy, or geopolitical developments.
Bearish continuation?US Dollar Index (DXY) is rising towards the pivot and could drop to the 1st support.
Pivot: 100.54
1st Support: 98.32
1st Resistance: 101.78
Risk Warning:
Trading Forex and CFDs carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Forex and CFDs may not be suitable for all investors, so please ensure that you fully understand the risks involved and seek independent advice if necessary.
Disclaimer:
The above opinions given constitute general market commentary, and do not constitute the opinion or advice of IC Markets or any form of personal or investment advice.
Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, are intended only to be informative, is not an advice nor a recommendation, nor research, or a record of our trading prices, or an offer of, or solicitation for a transaction in any financial instrument and thus should not be treated as such. The information provided does not involve any specific investment objectives, financial situation and needs of any specific person who may receive it. Please be aware, that past performance is not a reliable indicator of future performance and/or results. Past Performance or Forward-looking scenarios based upon the reasonable beliefs of the third-party provider are not a guarantee of future performance. Actual results may differ materially from those anticipated in forward-looking or past performance statements. IC Markets makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or any information supplied by any third-party.
USDX-NEUTRAL BUY strategy 3 hourly GANN SQThe index is changing tune, but we should comfortably move beyond 98.60 before I feel we may have a chance to test 99.10 area. The chances are there, and perhaps this is start ofmit, but kindly wait and see a confirmation for it.
Strategy BUY @ 98.50-98.75 (on break) and take profit near 99.78 for now.
DXY ready for free fall?DXY at 99.39 strong liquidity grab then rejected back to the support level then following a head and shoulder, price completely has broker out of the support with CPI, it has finally managed break out of consolidation.
As the impulse has volume, we may see further drop to the monthly support 97.93 and may potentially break below as there is FVG which may slide the price further down.