DXY going downDXY is ready for a leg down, after bear div and topping within projected time on Daily. On 4H it's building up to a nice #SBS shape, where we can expect a move down. 4H time projection says downwards into start of, or mid, February. Shortby keriks9911
USDX looks weak. Could it be an end to the $ rally. 2xcharts I won't comment much, I think you can make your own minds up looking at the chart of USDX, 1 x daily & 1 hourly chart and its the lower timeframes that are looking bearish for the US currency going into less than 2 weeks before Christmas. Shortby Easy_Explosive_TradingUpdated 3
DXY: Wave 2) of (C) Completed and we are on the way to 98.5 ?DISCLAIMER : All labelling and wave counts done by me by manually and i will keep change according to the LIVE MARKET PRICE ACTION. So don't bias, hope on my trade plans...try to learn and make your own strategy...Following is not that much easy...I AM NOT RESPONSIBLE FOR ANY LOSSES IF U TOOK THE TRADE ACCORDING TO MY TRADE PLANS....THANKS LOT..CHEERS by nmkvijay1110
Direction of the DXY for this week Direction of the DXY for this week seems like an up trend will need to fill up FVG up there at the opening of the market DXY will go down but for the long term will go up ....by dannymit162
DXY POTENTIAL BUY OPPORTUNITY!DXY (US dollar index) May continue to wax stronger! From the technical standpoint, we can see how price formed a double button and successfully broke the neckline. This is an insight that buyers are likely to dominate the market and trade a new high! Coming week we anticipate retail sales report and Fed rate cuts. It’s good we stay informed and plan accordingly for the week! Longby Cartela3
Market Year Wrap With Gary Thomson: 2024 Market Insights & 2025 Market Year Wrap With Gary Thomson: 2024 Market Insights & 2025 Outlook As we approach the close of 2024, it’s time to reflect on results and think of potential opportunities for the year ahead. Join Gary Thomson, the COO of FXOpen UK, as he sums up the key market trends that shaped 2024 and provides insights on what to expect in 2025. - Inflation and Interest Rates - Forex Market Trends - Commodity Markets - Stock Market Highlights - 2025 Outlook 🌐 FXOpen official website: www.fxopen.com CFDs are complex instruments and come with a high risk of losing your money.08:14by FXOpen115
DeGRAM | DXY has reached a resistance levelDXY is above the descending channel and trend lines. The chart formed a harmonic pattern, and after it left the channel, broke the upper trend line and formed a rising top, which broke the descending structure. Now the price is above the 50% retracement level of the bearish momentum. We expect growth after consolidation above the nearest resistance level. ------------------- Share your opinion in the comments and support the idea with like. Thanks for your support!Longby DeGRAM114
check the trendIt is expected that a trend change will form within the current resistance range and we will witness the beginning of a downward trend. By passing the resistance range, the upward trend will likely continueby STPFOREX2
DXY on the rise.DXY has completed its Wyckoff Accumulation and is headed higher. The DXY strengthening supports shorts on XX/USD pairs.by TranceaddicT661
DXY Will Go Down From Resistance! Short! Please, check our technical outlook for DXY. Time Frame: 9h Current Trend: Bearish Sentiment: Overbought (based on 7-period RSI) Forecast: Bearish The market is on a crucial zone of supply 106.563. The above-mentioned technicals clearly indicate the dominance of sellers on the market. I recommend shorting the instrument, aiming at 105.718 level. P.S Overbought describes a period of time where there has been a significant and consistent upward move in price over a period of time without much pullback. Like and subscribe and comment my ideas if you enjoy them!Shortby SignalProvider114
12.12.24 Morning ForecastPairs on Watch - FX:GBPAUD FX:EURUSD FX:AUDNZD A short overview of the instruments I am looking at for today, multi-timeframe analysis down to what I will be looking at for an entry. Enjoy! 10:21by JordanWillson224
The US Dollar Index (DXY) is currently trading around 106.70. The US Dollar Index (DXY) is currently trading around 106.70. On the 4-hour chart, DXY is testing a resistance TVC:DXY zone near 107.00–107.13, which aligns with the 61.8% Fibonacci retracement of a prior move. If this level is breached, the next target could be 107.50 or higher, signaling a continuation of the uptrend. However, failure to break above this resistance could result in a pullback, with support seen at 106.10, followed by the 105.63–105.78 range. In summary, DXY is at a critical juncture. A breakout above its resistance would likely fuel further bullish momentum, while a rejection may see it revert to lower support levels.Shortby TRADE_CENTER_1Updated 7
What Is Quantitative Tightening and How Does It Work?What Is Quantitative Tightening and How Does It Work in Financial Markets? Quantitative tightening (QT) is a critical tool central banks use to control inflation by reducing the money supply. In this article, we’ll break down how QT works, its impact on financial markets, and how it influences the broader economy. Read on to learn more about the effects of QT and how it shapes markets. What Is Quantitative Tightening? Quantitative tightening (QT) is a type of tightening monetary policy that central banks use to reduce the amount of money circulating in the economy. When central banks like the USA’s Federal Reserve or European Central Bank engage in QT, they aim to tighten liquidity by reducing their balance sheets, typically by allowing bonds or other financial assets to mature without reinvestment or selling them outright. QT is a practice often used alongside hiking central bank interest rates, though not always. The main goal of QT is to manage inflation by increasing borrowing costs and reducing demand for goods and services. By letting bonds mature or selling them, central banks effectively pull money out of circulation. This leads to fewer funds available for lending, which raises interest rates. Higher rates make borrowing more expensive, encouraging businesses and consumers to cut back on spending, which can help cool down inflation. An example of this mechanism in action is the Fed’s QT program that began in 2022 to tackle high inflation by reducing the size of its balance sheet after years of quantitative easing. QT is essentially the opposite of quantitative easing (QE), which is aimed at stimulating economic growth. What Is Quantitative Easing? QT and QE are both used to correct the economy’s course. However, while QT refers to the tightening of monetary policy, QE loosens it. During QE, central banks buy large quantities of government bonds and other assets to inject liquidity into the economy. This increases the money supply, lowers interest rates, and is intended to stimulate economic activity, particularly during downturns or recessions. QE was used extensively following the 2008 financial crisis and during the COVID-19 pandemic as a way to support economic recovery. How Does Quantitative Tightening Work? Quantitative tightening works by pulling liquidity out of the financial system, reducing the amount of money available for borrowing and investment. Central banks use a couple of specific methods to achieve this, which have a ripple effect on markets and the broader economy. 1. Reducing Asset Holdings One of the most common ways central banks implement QT is by allowing bonds and other financial assets on their balance sheets to mature without reinvesting the proceeds. For example, the Federal Reserve might hold trillions in government bonds. When those bonds mature, instead of using the proceeds to buy new bonds, the Fed simply lets the money flow out of circulation. This reduces the central bank’s balance sheet and shrinks the money supply, contributing to higher borrowing costs. 2. Selling Bonds Another method central banks use is the outright sale of government bonds or other securities. By selling assets, central banks increase the supply of bonds in the market. This can push bond prices down and drive yields higher, which makes borrowing more expensive for companies, governments, and individuals alike. Rising bond yields often lead to higher interest rates across the board, from mortgages to business loans—when there’s less money available for lending, banks raise the rates they charge for loans. Effects of Quantitative Tightening on the Broader Economy Quantitative tightening has significant ripple effects across the broader economy. As central banks reduce liquidity, it impacts everything from borrowing costs to consumer spending and business investment. 1. Higher Borrowing Costs One of the most immediate effects of QT is the rise in interest rates. As central banks shrink their balance sheets, bond prices fall, pushing yields higher. This, in turn, raises the cost of borrowing for businesses and consumers. There may also be interest rate hikes alongside QT, further tightening lending conditions. Mortgages, personal loans, and corporate debt all become more expensive, discouraging borrowing. For businesses, higher financing costs can limit expansion plans, reducing investment in growth or innovation. Households, meanwhile, face elevated mortgage rates, leading to reduced demand in housing markets and potentially lower home prices. 2. Reduced Consumer Spending As the cost of borrowing rises, consumers have less disposable income. Higher interest rates on loans and credit cards mean households spend more on servicing debt and less on goods and services. This can slow down retail sales and reduce overall consumer demand, which is a critical driver of economic growth. Lower consumer spending typically affects sectors like retail, real estate, and manufacturing, which depend on a high volume of transactions. 3. Slower Business Growth QT also impacts businesses by making it more expensive to access credit. Companies that rely on borrowing to finance operations, new projects, or expansions find it harder to justify taking on debt. With higher interest payments eating into profits, many businesses may delay or scale back investment plans. In addition, small and medium-sized enterprises (SMEs) that depend on bank loans for cash flow are often the hardest hit. 4. Inflation Control While QT can slow economic activity, its primary goal is to rein in inflation. By reducing the money supply and making credit more expensive, it cools down demand. Lower consumer and business spending can reduce price pressures, helping to stabilise inflation. This was a key objective when the Federal Reserve resumed QT in 2022 to counter post-pandemic inflation. 5. Potential Economic Slowdown However, if QT is too aggressive, it risks triggering an economic slowdown or even a recession. Tightening financial conditions leads to reduced economic growth, as seen in 2018 when markets reacted negatively to the Federal Reserve’s balance sheet reductions. How Does Quantitative Tightening Affect Financial Markets? Quantitative tightening can have significant effects across different financial markets. By reducing liquidity, it influences the behaviour of key assets, from bonds to equities, and can reshape market conditions in profound ways. 1. Bond Market QT often leads to higher bond yields. When central banks like the Federal Reserve reduce their bond holdings or stop reinvesting in new ones, the supply of bonds in the market increases. As bond prices drop, yields rise to attract new buyers. This rise in yields means governments and corporations face higher borrowing costs. For instance, during the Federal Reserve’s quantitative tightening efforts in 2018, US Treasury yields rose significantly as more bonds became available in the market. 2. Stock Market Equity markets often react negatively to QT. As liquidity tightens, the cost of borrowing rises for businesses, which can squeeze corporate profits and reduce their ability to invest or expand. Investors also tend to move away from riskier assets like stocks when bonds offer higher yields, as bonds become more attractive for their safety and improved returns. In 2018, US stocks experienced heightened volatility when the Fed’s quantitative tightening efforts combined with rate hikes led to market corrections. 3. Foreign Exchange Market QT can also impact currency values. As central banks tighten monetary conditions and raise interest rates, their currencies often strengthen relative to others. This is because higher yields and interest rates attract foreign investment, increasing demand for the currency. For example, when the Fed began QT in 2022, the US dollar strengthened as investors sought better returns on US assets like Treasury bonds. See how the US dollar strengthening occurred for yourself in FXOpen’s free TickTrader trading platform. 4. Credit Market QT reduces the availability of credit as banks and financial institutions face higher borrowing costs themselves. As liquidity is drained from the system, lenders tighten their credit conditions, making loans more expensive and harder to get. This can slow economic growth as businesses and consumers find it more costly to finance investments or purchases. In effect, QT creates a tighter financial environment by reducing liquidity, pushing up borrowing costs, and shifting investor behaviour across various markets. Each asset class feels the impact in different ways, but the overall effect is a more cautious, less liquid financial system. The Bottom Line Quantitative tightening is a powerful tool central banks use to manage inflation by reducing liquidity and increasing interest rates. While it helps control rising prices, QT can impact borrowing costs, investment, and market stability. Understanding how these mechanisms work is crucial for informed trading. Ready to take advantage of different market conditions? Open an FXOpen account today and start navigating more than 700 financial markets with low-cost, high-speed trading conditions, and four advanced trading platforms. FAQ What Is Quantitative Tightening? The quantitative tightening definition refers to a monetary policy used by central banks to reduce liquidity in the economy. This involves decreasing the central bank’s balance sheet by selling bonds or allowing them to mature without reinvestment. QT is typically aimed at curbing inflation by raising borrowing costs and slowing economic activity. How Does Quantitative Tightening Work? QT works by reducing the supply of money in the financial system. Central banks achieve this by selling government bonds or letting them mature. As the bonds leave the market, interest rates rise, making borrowing more expensive for businesses and consumers. How Does Quantitative Tightening Affect the Stock Market? QT can negatively impact stock markets. As interest rates rise and liquidity tightens, borrowing costs for companies increase, which can hurt corporate profits. Investors may shift towards so-called safer assets like bonds, reducing demand for stocks and contributing to market volatility. What Is the Difference Between QT and QE? Quantitative easing (QE) increases the money supply by buying bonds, while quantitative tightening (QT) reduces liquidity by selling bonds or letting them mature. The main difference between quantitative easing vs tightening is that QE stimulates economic growth, while QT aims to control inflation. What Does It Mean When the Fed Is Tightening? When the Federal Reserve tightens, it implements policies to reduce money supply and raise interest rates. This helps control inflation by making borrowing more expensive and slowing economic activity. This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.Educationby FXOpen117
DXY - 4H Dollar Index more FallTechnical Perspective: TVC:DXY experienced two significant bullish legs in October and November on the daily time frame. However, the index started to fall sharply at the end of November, and this bearish momentum remains strong. On the 4H chart, DXY reached a key resistance zone and faced a significant rejection with notable bearish momentum, signaling the continuation of the downtrend. The current movement indicates a high likelihood of further declines, potentially to the bottom of the trading range. Many USD pairs are at critical support or resistance levels, and expected reactions from these zones could amplify downward pressure on the DXY, making it increasingly vulnerable to a substantial fall. Fundamental Perspective: In December 2024, the bearish sentiment surrounding the DXY is driven by key fundamental factors. The Federal Reserve is anticipated to implement another 25 basis point interest rate cut during its December 18 meeting, following earlier cuts in September and November. This dovish policy reflects the Fed’s commitment to supporting economic growth amidst a slightly cooling labor market and growing global uncertainties. Adding to the pressure, inflation data showed a 2.7% year-over-year increase in November, a slight uptick from 2.6% in October. Despite this, the Fed remains focused on easing monetary conditions to mitigate recession risks. Additionally, the recent U.S. presidential election has raised prospects of fiscal policy changes, including proposed tax cuts and potential tariff adjustments, which contribute to market uncertainty and weigh on the dollar. These fundamental shifts align with the bearish technical setup, suggesting that the DXY’s downtrend is likely to persist in the near term. Keep an eye on upcoming Fed announcements and inflation data for further confirmation of this trajectory.Shortby Sober_Trading7
DXY STRUCTURE As the write up on the screen is self explanatory and my recent post about EURUSD shows the opposite of this because this pairs are negatively correlated, I will wait and see what the markets will show me before I commit to the market, do well to like share and follow, stay tuned for more updates.by Dr_Trade14
DXY Potential UpsidesHey Traders, in today's trading session we are monitoring DXY for a buying opportunity around 106.200 zone, DXY is trading in an uptrend and currently is in a correction phase in which it is approaching the trend at 106.200 support and resistance area. Trade safe, Joe.Longby JoeChampion4414
DXY SELL BIASUs dollar index (DXY) is clearly seen forming a downtrend with a head And shoulder pattern, so I anticipate price to go short Shortby Silveryekerete1
DXY Trading JournalDXY Trading Journal Dec 24 Price is delivering in a Premium. I suspect that Price will seek the 50% level and rebalance the 15FVG. Price should react at that level and rally seeking higher prices. Potentially rebalancing the higher FVG for the high? by LParnell0
Quick Analysis Just before Christmas Hey there, So, I though of doing a quick market review just before Christmas, hoping to bring some extra insight into whats happening in the markets this week. Also note that this is but just my opinion and my view of the markets, it should in no way be used or interpreted as advice or signals, but rather as a reference and a soundboard. Furthermore, I wish you all a happy, blessed and merry Christmas and a successful and profitable new year. 09:32by DeanMuller1
Dollar Bias for Christmas weekEverything is clear in the chart.Low volatility long vacations but mindful to play.by mdilawar786920
idea on a chart US Dollar (USD) continues to trade near its 2-year highs. Dollar Index (DXY) was last seen at 108.23, OCBC’s FX analysts Christopher Wong notes. USD continues to trade near its 2-year high “Daily momentum is mild bullish while RSI rose into overbought conditions. Resistance at 108.50, 109 levels. Support at 107.20, 106.70 (21 DMA). Day ahead watch US data – core PCE, personal income/spending and Uni of Michigan sentiment. Market liquidity is increasingly thinner and fluid pricing can exacerbate FX moves. A softer than expected print may provide a breather for risk proxies and tame USD bulls.”by EZIO-FX0
USD$ is set to rise. On Monday I said the opposite: Falling I stand corrected on what I published last Monday right before the Asia session, I think a rushed analysis and when you see what you want to see in a chart to support an idea, it can all go wrong. Or did the USD$ have such a bullish week to turn the charts around in such a short space of time. I don't know but both the Daily and Weekly chart of the USDX have a very bullish W/Bottom. For those who don't know these patterns, they are basically a double/bottom or bottom1 & a bottom 2 and a W is formed as price is written up to a Neckline which is the yellow lines on the daily and weekly charts here. I initially thought and stated that the USD$ may run up to 1.11 /1.12 and from a technical standpoint of these W/bottoms that is exactly where price may end up. But lots can happen in the meantime. Briefly on Gold and Silver: The Gold price has turned around bullishly after turning down in a Double/Top for many days. This turnaround also coincides with the bottom trend-line which is also the bottom line of a Triangle formation on the daily. Next trading day I would expect Gold to continue to climb for a couple of sessions before turning back down to the trend line and bottom of Daily-triangle which is all but complete and price would then either breakdown or breakout from triangle. I think that despite the USD$ continuing to climb, the Gold price will do the same thing and climb but probably won't go to an ATH just yet. Silver has a bearish Head n Shoulders on the Daily. Price will retest the sell area next session on the daily which means the Silver price will get a false Long rally and selling will resume into the daily H n S pattern. The Silver price is right on the daily 200ema and back in January and February 2024 price got a little below the 200ema and then took off on a Long rally. Same thing expected, the HnS will play out and price will fall back a little more and then a buying spree and rally upwards will commence in Silver, possible just before the New Year.Longby Easy_Explosive_TradingUpdated 0
DXY helping out the VIX Here this great Liquidity Sentiment Indicator, help us grab some festive season before the holiday break! by brucegibbs0