U.S. Dollar Index Analysis: Trendline Breakout Targets $110 ResiThe U.S. Dollar Index (DXY) has shown a strong breakout above a key descending trendline, signaling renewed bullish momentum.
USDX trade ideas
The Power of Negative Correlation: DXY vs. GBP/USDThe relationship between the U.S. Dollar Index (DXY) and GBP/USD exemplifies a classic case of negative correlation in the forex market. As the DXY tracks the strength of the U.S. dollar against a basket of major currencies, a rise in the DXY typically results in a decline in GBP/USD, and vice versa. This inverse relationship reflects the direct impact of dollar strength on the British pound, which makes analyzing both charts together a powerful tool for identifying high-probability trade setups.
In the attached charts, the DXY shows a bullish breakout and retest pattern, suggesting further upside potential as it moves toward the 109.500 level. Meanwhile, GBP/USD mirrors this movement inversely, with a bearish trend forming and a projected move toward the 1.23500 support zone. These complementary patterns not only confirm the negative correlation but also offer insights into potential price action, allowing traders to align their trades with broader market sentiment.
For traders, understanding and leveraging this negative correlation can enhance both risk management and trade timing. By monitoring DXY for signs of dollar strength, traders can anticipate potential downward moves in GBP/USD. This approach, combined with breakout and retest strategies, offers a clear framework for capitalizing on these movements. Keep an eye on key support and resistance levels on both charts for optimal trade entries.
DXY shortExpecting short term short on DXY, we reached monthly sibi, there is unfilled inefficiency. Forex this phase will be long
Dxy market keeps maintaining the bullish rally The DXY continues its bullish rally, breaching the 109.000 level and signaling strong upward momentum. Current projections indicate a potential demand zone forming around 107.900, which could serve as a key support for continued gains follow for more insights , comment, and boost idea
Dollar Index Heading Higherincredibly as it may seem considering the fundamentals, the trajectory of the Buck against all other currencies looks to still have room to travel. The pattern is moving in the late stages of a wave C up. Specifically on the fifth wave of C. This portends of a violent reversal. The first objective is moving under the channel projected from the end of wave A. Make no mistake about it the day in the sun for the dollar will end, and when it does, it will bleed hard.
Happy trading :)
DXY: HTF Analysis (72D)What’s Happening Now on the High-Timeframe?
The DXY measures the strength of the U.S. dollar against other major currencies. On the 72-day chart, we’re seeing signs of a potential shift, but the overall trend is still in downtrend territory. Keep an eye on how the price reacts to these levels and stay ready to adjust your strategy!
RESISTANCE (Areas where price struggles to rise above):
If Resistance holds firm, Price Action could reach Support I (see below)
If Resistance is strong, Price Action could short to Support II (see below)
118.53 (Sell Limit Order II): the 2nd resistance level for sellers
117.09 (Supply Zone): This is a hard ceiling for now, far above the current price.
113.50 (Sell Limit Order I): the 1st resistance level for sellers
110.29 (Resistance) If the price keeps getting stuck here, it might fall back down.
SUPPORT (Areas where price might stop falling):
100.4180 (Support I): The first major safety net if the price drops.
95.8590: A deeper support that could attract buyers.
93.96 (Support II): The second major safety net if the price drops.
89.9269: A historical level where prices have bounced in the past.
OSCILLATORS (Measure speed or momentum of price)
Relative Strength Index (RSI): At 81.36, it suggests the price is overbought, meaning it’s been rising too fast and might slow down.
Commodity Channel Index (CCI): At 134.004, it’s signaling a potential SELL since the price might drop soon.
Momentum: Shows a weak SELL signal, suggesting the upward speed is losing steam.
MACD: Shows a small BUY signal, meaning there’s still some upward energy left.
MOVING AVERAGES (Track average price over time)
Most moving averages (10-day, 20-day, etc.) show a BUY, meaning the price has been above its averages and is in an uptrend for now.
Hull Moving Average: Shows a SELL signal, hinting at potential short-term weakness.
KEY TAKEAWAYS
The Good News (for buyers): The moving averages suggest that DXY is still in an upward move on shorter timeframes, with prices above key averages.
The Bad News (for sellers): Oscillators like the RSI and Momentum show that the current upward push might be losing strength. The market might correct (fall) soon.
If the price struggles to break 110.2990, it might fall back to 100.4180.
A breakthrough above 112.5000 could lead to a move toward the 118.5326 zone.
Even though we’re seeing some upward action now, the bigger trend is still downward. A reversal would need sustained movement above major resistance.
If price falls: Look for potential rebounds around 100.4180 or 95.8590.
If price rises: Be cautious as it approaches 112.5000, where sellers might come back in.
Right now, DXY is facing challenges near 110.3990. If it can’t push higher, it’s likely to fall back to lower levels.
Moving averages suggest strength, but oscillators are hinting at exhaustion. This mix of signals means you should be cautious and wait for clear moves.
Apparently, bright days are ahead of DXYDXY has underwent a reversal:
1- A clean inverted head and shoulders
2- A dropping wedge break high (Which is a reversal at the end of the bearish move)
3- Break and retest of the inverted head and shoulders and the wedge simultaneously
4- Ichimoku cloud broken high as well, indicating the shifting trend bias
Expect the target area as marked on the chart either by the end of this year or whenever FED announces rate cuts.
Best of luck and happy trading!
What's next for the Dollar?Will they keep driving the dollar to push us into hyperinflation territory and bring about turbulent times?
The FED is in the midst of reducing supply while people are selling off assets. Will the $$$ have any value later on?
3M time frame DXY. I don't trade this, just monitoring
DXY Parabolic Rally IncomingDXY recently reached its highest level since 2022 after a huge rally off of $100. This is a longer term monthly chart. We can see what appears to be bullish consolidation since 2022 between $100-$105. The next move will be up to that 2022 high followed by a move back up to the 2001 high and potentially higher. This will be a disaster for equities.
US treasury yields are about to skyrocket causing the collapse of the Japanese Yen and most likely many other currencies. The fed will have to pause the cuts, they may even be forced to hike again. The writing is on the wall. If I'm wrong and it falls instead, $100 is the next area I'd look for it to hold. As long as it holds there, it is still bullish on the longer term time frames in my opinion.
DXY long1)Trend defined. Daily uptrend.
2)Contradictory limit entry order. At the lower extreme of an 1h consolidation area.
3)Default loss. Just below the initiative bull candle.
4)Default target level. 5.54.
5)Risk <= 3%.
6)Singular trade.
7)Trades placed today <= 5.
USD completing wave 5US Dollar index hit the long term 61.8% retracement at 108.95.
This could be the wave 5 completion, which may be a big resistance for the US Dollar to start the year.
A CLEAR INDICATION THAT DXY IS GOING FOR @114.DXY HAS BEEN RANGE BOUND SINCE YEAR@22..
And during this time it has a couple of attempts to break out of the range and failed until APPR @16 OF DEC 25 it mananged to not only break but retest THE PREVIOUS RANGE CEILING.
WHICH CURRENTLY CLEARLY INDICATES THE CLEAR INTENTIONS OF THE DXY TO GO AFTER @114 THE ALL TIME HIGH.
Previously we had intentions of swinging THE DXY LOW but with this analysis our BIASED HAS CHANGED WE ARE OF COURSE LOOKING FOR POSSIBLE SHORT short POSITIONS FOR THE BIG RETEST OF THE CEILING BEFORE THE PUSH FOR THE @114 BREAK.
-AND SHORTLY LOOKING AT HOW THE US ECONOMY HAS BEEN STRONG TOWARDS THE END OF year@24 this makes our bias that the DXY has strength and determination to eliminate @114 in the first quarter of 2025.
Bullish dollarPrice is bullish on the weekly, price broke out of a weekly resistance zone and retested it, price also formed a symmetrical triangle which broke out above with a little pullback and it's impulse move
Key Levels for the Month ∷01.2025 ∷DXY🔳Key Levels Overview for the Month🔲 ∷01.2025 🐍
Dynamic Resistance🔀
110.50
109
Dynamic Supports🔀
106.50
105
Mid Pivot (🐻bull&bear🐂 zone ch trend)
112.50
108.54
104.44
range of supply and demand
110.02
107.33
104.64
Range Band 🐇
111.26
107.94
104.61
DXY at 108.4: The Dollar’s Midlife Crisis—Breakout or Breakdown?Alright, traders, let’s not sugarcoat it. What you’re looking at here isn’t just another chart—it’s the U.S. Dollar Index (DXY) standing at the gates of destiny. 💥
🔥 The Setup:
Testing the almighty 108.4 resistance. Will it smash through like a battering ram or faceplant into oblivion? 🤔
Riding the top of the Bollinger Bands like it’s a rollercoaster at peak speed. Overbought much? 🎢
RSI? She’s chilling at 59 —neither here nor there but whispering “don’t count me out just yet.” 🧘♂️
🚀 The Bullish Dream: Break 108.4, and this thing’s flying to the moon (or at least 112). Bulls will party like it’s 1985. 🐂💃
💀 The Bearish Nightmare: Rejected here? Say hello to a pullback at 104, and if things really hit the fan, we’re looking at 100.6. Bears will sip their coffee smugly. 🐻☕
But here’s the kicker: DXY isn’t just a chart—it’s the puppet master pulling the strings of everything from Bitcoin to gold to your morning cup of coffee. ☕ (Yes, inflation is still a thing.)
⚡ Final Word: Whether it breaks or bends, this is the make-or-break moment for the dollar. Get ready for fireworks. 🎇
George out. ✌️ #DXY #DollarIndex #Forex
2025 Outlook : DXYThe U.S. Dollar Index (DXY), which measures the dollar's value against a basket of major currencies, has shown notable strength in the last quarter of 2024. This trend is influenced by several key factors:
1) Federal Reserve Policy and Inflation Concerns
The Federal Reserve's renewed cautious approach to interest rate cuts has been pivotal in supporting the dollar's value.
Concerns about inflation, potentially exacerbated by anticipated fiscal policies under President Donald Trump's administration, further contribute to this cautious monetary approach.
The Fed's reluctance to reduce rates aggressively may continue to bolster the DXY.
2) Economic Performance and Trade Policies
The U.S. economy's robust performance, coupled with expectations of new tariffs and tax reforms under the Trump administration, is anticipated to sustain the dollar's strength.
However, these policies may lead to increased inflationary pressures, influencing the Fed's monetary decisions and, consequently, the DXY's trajectory.
3) Global Economic Comparisons
Comparatively weaker economic growth in regions like Europe and Japan, where central banks maintain dovish policies, enhances the dollar's appeal.
This divergence in economic performance and monetary policy stances contributes to the DXY's bullish outlook.
Projections for the DXY in 2025 may vary.
A rise to around the 115 level (2022 high), driven by the factors mentioned above, seems very likely.
Additionally, based on the Fibonacci Extension, the DXY could possibly reach a high of 124.50 in the long-term.
However, fluctuations are anticipated at those historic high levels, with some significant declines.
While the current outlook for the DXY appears bullish, it's essential to consider potential risks, including:
- Trade Policies: The implementation of new tariffs could introduce uncertainties affecting the dollar's value.
- Global Economic Conditions: Improvements in other economies or shifts in their monetary policies could influence the DXY's trajectory.
- Domestic Economic Indicators: Factors such as the U.S. budget deficit and overall economic health will play significant roles in shaping the dollar's strength.
DeGRAM | DXY testing the resistanceThe DXY is in an ascending channel between the trend lines.
The price is moving from the dynamic resistance.
The chart has formed a harmonic pattern and is now testing the resistance level, but has not yet consolidated above it.
We expect a decline after a successful consolidation under the channel.
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Share your opinion in the comments and support the idea with like. Thanks for your support!
DXY Dollar Index Market Bullish Heist Plan🌟Hi! Hola! Ola! Bonjour! Hallo!🌟
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Entry 📈 : You can enter a Bull trade at any point after the Breakout.
however I advise placing Buy limit orders within a 15 or 30 minute timeframe. Entry from the most recent or closest low or high level should be in retest.
Stop Loss 🛑: Using the 4H period, the recent / nearest low or high level.
Goal 🎯: 110.500
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Based on the fundamental analysis, I would conclude that the DXY (US Dollar Index) is: Bearish
Reasons:
Interest rate differential: The Federal Reserve's (Fed) interest rate (4.50%) is high compared to other major economies, but the rate hike cycle is expected to slow down, which could lead to a decline in the DXY.
Economic growth: The US GDP growth (2.1%) is slowing down, and the economy is facing headwinds from trade tensions and global economic uncertainty, which could lead to a decline in the DXY.
Trade balance: The US trade deficit (USD 50 billion) is large and growing, which could put downward pressure on the DXY.
Fiscal policy: The US fiscal policy is becoming increasingly expansionary, which could lead to a decline in the DXY.
However, it's essential to consider the following risks:
Global economic slowdown: A slowdown in global economic growth, particularly in China and Europe, could lead to a flight to safety and support the DXY.
Geopolitical tensions: Escalating geopolitical tensions, particularly in the Middle East and North Korea, could lead to a flight to safety and support the DXY.
Fed's monetary policy: The Fed's dovish stance and potential interest rate cuts could support the DXY.
Please note that this is a general analysis and not personalized investment advice. It's essential to consider your own risk tolerance and market analysis before making any investment decisions.
Take advantage of the target and get away 🎯 Swing Traders Please reserve the half amount of money and watch for the next dynamic level or order block breakout. Once it is resolved, we can go on to the next new target in our heist plan.
Keep in mind that these factors can change rapidly, and it's essential to stay up-to-date with market developments and adjust your analysis accordingly.
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DOLLARTHE DXY remains on bullish net supported by hawkish fed shift in monetary policies and president trump America first policy
DXY close the year on bullish sentiment which could continue its rally into break of structure and sell into my supply roof ascending trendline
DXY - EUR - GBP Forecasting new years price action for the $TVC:DXY. As we are closing the yearly candle with momentum and energetic. I am seeing a bullish price action for the dollar index this year until the external high. This could take maybe 1-3 months.
I want to see the new years candle to manipulate in to the wick/immediate rebalance, then move higher. O.L .H.C
Bullish dollar = Bearish PA for other pairs.
What's Flowing: FX & CRYPTO“If it’s for the bulls, it’s for the bears” – an acknowledgment that markets are cyclical, often presenting opportunities on both ends of the spectrum. In this snapshot, bear sentiment dominates DXY and XAU/CHF, while BCH/USD shows significant retracement after a bullish rally.
Happy New Years, Your Most Profitable Day is Still Yet To Come!
Dollar Bias for Christmas weekEverything is clear in the chart.Low volatility long vacations but mindful to play.
