Dollar Index (DXY): Top-Down Analysis & Trading Plan 💵
Dollar Index is currently approaching a solid horizontal resistance.
The market formed a head and shoulders pattern formation on that on a 4H time frame.
Monitor the reaction of the price to its neckline.
If a 4H candle closes below 105.43, a bearish movement will be expected.
Targets will be 105.16 / 104.97
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Dollarindex
The Alarming Volatility of the US Dollar – A Call to Action
The recent turbulent fluctuations witnessed in the strength of the US Dollar have left experts bewildered and traders on edge. As we navigate through these uncertain times, it is crucial that we take a moment to pause and reevaluate our trading positions before potentially exposing ourselves to unnecessary risks.
The unprecedented volatility of the US Dollar has sent shockwaves across the global financial markets, stemming from a multitude of economic, political, and social events. These complexities have made it exceedingly challenging for even the most experienced traders to predict or decipher the future direction of the dollar accurately. The sudden shifts and erratic movements have destabilized not only its inherent value but also significantly influenced the correlation with other major currencies.
Given the circumstances, I implore you all to reflect upon your current dollar trading strategies. It is paramount that we reassess the potential risks and rewards associated with trading the US Dollar in the present climate. As responsible traders, it is vital to exercise caution and adjust our positions accordingly, considering the magnitude of uncertainty that envelopes the dollar's market stability.
I strongly encourage you to undertake a thorough analysis of your portfolios, taking into account the potential consequences of sustained volatility and the possible ripple effects on other currencies and financial assets. It is prudent to diversify your holdings, exploring alternative investment options that may help mitigate the potential risks associated with the current dollar turbulence.
In these challenging times, it is crucial for us to remain vigilant, responsible, and adaptable in our approach. By taking a pause and reevaluating our dollar trading strategies, we can safeguard our investments and insulate ourselves from sudden and adverse market movements. Remember, preserving capital is equally as important as pursuing profits.
DXY Major reversal Good day traders and investors,
Well, it looks like the dollar has had a major reversal just as expected and right on time. I have been expecting for a couple months now that something big is to be expected by mid September to the latest mid October as the cycle pertains too. The DXY hit the .5 on the fib which is generally a big reversal area, and boy did it reject. It looks like gravestone doji has formed as well. This is stock and crypto positive. What was the news at same time? Surprise!!! More war, now with Israel the "holy Land"
In the seeks to follow look for the dollar to collapse as assets rise.
Reading multi timeframe Secrethello everyone, this is my first video tutorial on this website. I hope I explained everything properly if I didn't let me know so I can make improvements...
I did have some people who contacted me how to trade, they liked my analysis so I made this video for them and also for people new to trading.. Or people who are already pro this will give a nice upgrade on there skills
for this tutorial I used DXY which is the most important index in trading and I think it's a good start for new traders so they can use DXY to trade major currencies..
please let me know how the video was?
thank you
US DOLLAR 12MONTH CHART -- SCARY PROSPECT.Here's a look at DXY US DOLLAR INDEX on a 12 month chart. This year, it's the second time it signalled a big shift on the upper histogram, last time it did was 2021. Is this the start of the big fall for the USD.
This may last for a few years -- worse a decade.
Again it may or it may not happen, but the 12-month chart doesn't change mind often. I guess we'll see..
DXY up in Z and then starts to slide?The Dollar index is in its last stages of the up move and should be expected to tumble as soon as it completes the wave c of Z in this counter trend bounce we are witnessing after an impulsive move to the downside(sept 2022)
The index is expected to move towards 94-93$ mark after the new downside impulse begins.
Dollar Index IdeaGood morning, traders! Here's a quick update on the Dollar Index. It appears to be experiencing a substantial selloff, and indications point toward a repricing into lower liquidity levels.
Interestingly, in contrast, we're observing rallies in other dollar pairs, including EUR/USD. We made an attempt to take a swing position lower in EUR/USD yesterday, but as we've seen, sometimes recognizing when a trade is moving against you is an art in itself. We promptly closed that trade with zero profit, demonstrating the importance of swift decision-making.
This situation underscores the significance of monitoring correlation between currency pairs. Understanding these relationships can be instrumental in making informed trading choices.
As for the Dollar Index, it's worth noting the presence of a single-print level at 104.897, often referred to as a "liquidity void" in modern trading vernacular. This is a particularly attractive target for algorithmic trading, and it will be intriguing to see how events unfold.
Wishing you all a day of successful investing, dear traders.
DXY Peaks as Leverage Combined Positions for USD Index RiseIt is with great concern that I bring to your notice the recent surge in leverage combined positions for the USD index, coinciding with the apparent peak of the Dollar Index (DXY). This convergence of events has prompted us to urge you to exercise caution and consider pausing your USD trading activities.
Over the past few weeks, we have witnessed the DXY reaching new heights, bolstered by a series of positive economic indicators and widespread optimism. However, it is crucial to recognize that such prolonged upward trends tend to have limitations, often leading to market corrections or reversals.
The mounting leverage combined positions for the USD index indicate an increasing number of traders speculating on the dollar's continued ascent. While this may seem enticing, history has shown us that excessive optimism and overleveraging can be precursors to market downturns. As responsible traders, it is our duty to approach these situations with a level-headed perspective.
Therefore, we strongly advise you to pause and reevaluate your USD trading strategies, taking into account the current market conditions and the potential risks associated with the DXY's peak. Consider diversifying your portfolio, exploring alternative currency pairs, or even temporarily shifting your focus to other assets that exhibit more favorable risk-reward ratios.
By exercising prudence during this phase of heightened optimism, you can better protect your capital and avoid potential losses. Remember, trading is a marathon, not a sprint, and preserving your financial stability is paramount.
In conclusion, we urge you to approach USD trading with caution, recognizing the potential risks associated with the DXY's current peak and the surge in leverage combined positions. Take this opportunity to reassess your strategies, diversify your portfolio, and consider alternative trading options. By doing so, you will be better positioned to adapt and thrive in the ever-evolving world of trading.
Can The Dollar Push Higher? Hey traders, welcome back.
The dollar is increasing heavily to the upside as I make this video.
Now we don't know how price will close but it is important to watch how she closes today.
If price continues this could affect the major currency pair market in a mighty way.
All Base dollar pairs could continue to increase while Quote dollar pairs could continue to decrease.
It's a patience game right now, but may be one to play if you have the right hand.
Prediction of the dollar index in the long term (weekly)The dollar index has moved on the path of July 11 so far and the scenario has not changed for now
According to the left of the chart and the completion of the technical model of liquidity provision, the long-term correction of the dollar index has been completed and it has started its main movement. This break of the dollar in 2023, in my opinion, was like the rest of a sheep before going to the slaughterhouse.
2023 was a break before the slaughter of all markets and 2024 is the beginning of the fall of markets.
This is confirmed by the dollar index with targets of 114 and 121.
Of course, markets like crypto are still alive and we can see price growth in them, but soon they will also approach the crash market.
The whales are currently resting.
US-DXY SELL AFTER BREAKOUT !!!HELLO TRADERS ,
Double-Top Patterns Indicate Market Rally Could Be Nearing End
as i can see the chart DXY is holding a support zone and trading under the trend line so
outer middle east tensions are increasing day by day no ceasefire happen soon in coming days war is spreading to other nations that not good for $ it had still not touch 107.40 level in this volatility this just an idea i personally enter in sell if it break the support as it is drawn in chart with a small risk and higher rewards
Stay tuned for updates on chart
How New Dollar Highs Affect The MajorsHi my trading friends,
Have you been following the dollar and what she has been doing over this past week? If not, I got you. The dollar made a new high after pulling back in a slight downtrend over the last few weeks.
We now need to see if price can hold that high position or fall.
Let me know in the comment section below what your next move will look like!
Like this post to boost it. Reply to let me know you care.
US Dollar Soaring with US Yield - Let's Long DXY!US dollar is currently on the rise, dancing in perfect harmony with the surging US yield!
The US dollar has been flexing its muscles lately, gaining strength against several major currencies. This upward trajectory has been propelled by the impressive rise in US yields, which have been climbing to new heights. It's a fantastic opportunity for us to capitalize on this bullish trend and potentially reap some significant rewards.
Now, you might be wondering how we can make the most of this incredible situation. Well, my dear traders, I would highly encourage you to consider going long on the US Dollar Index (DXY). By taking a long position on DXY, we can align ourselves with the current market sentiment and potentially maximize our profits.
Here's why I believe this is a golden opportunity:
1. Strong US Economy: The US economy has been showing remarkable resilience, with positive economic indicators and robust recovery efforts. This strength is attracting investors, leading to increased demand for the US dollar.
2. Rising US Yield: The surge in US yields has been grabbing attention worldwide, making US bonds more attractive to investors seeking higher returns. This influx of capital further bolsters the US dollar's position.
3. Technical Indicators: By analyzing technical indicators, we can see a bullish pattern emerging in the US dollar. This pattern, combined with the positive fundamentals, reinforces our confidence in the potential success of a long position on DXY.
So, my dear traders, let's seize this opportunity and ride the wave of the rising US dollar together! I urge you to carefully evaluate your trading strategies, assess the risks involved, and consider initiating a long position on DXY to potentially capitalize on this exciting market movement.
Remember, success in trading often comes from recognizing opportunities and acting upon them swiftly. The US dollar's ascent, coupled with the soaring US yield, presents us with a chance to make profitable trades and elevate our trading portfolios.
DXY: Grass isn't greener above 107The Dollar Index (DXY) finds itself stretching towards the top of the current trading channel, eyeing the 107 mark. While this channel top is foreseen as a limiting factor in the future, the immediate trajectory for DXY hints at a stretch towards 107 before a possible retrace to the channel bottom.
Key Observations:
1. Targeting 107: DXY is progressing towards 107, post which, a descent to the red box at the channel's bottom (between 97 and 93) aligned with the 50-period Moving Average (MA) on the 3-month chart is expected.
2. Fisher Indicator: A crucial retest of the channel to meet the 55 MA/EMA is highlighted by the Fisher Indicator, verifying the trend's sustainability.
3. Pullback Needed: Despite the run, the stretched outlook on daily and weekly charts suggests a necessary pullback to at least 104, aiming for a retest of the 50-week MA.
4. ABCDE Corrective Pattern: If this phase represents the D in an ABCDE corrective pattern, the 50-month MA on the 3-month chart could help pinpoint our E.
5. Risk Assets Opportunity: As DXY nears its peak around 107, a window of opportunity opens for risk-on assets like BTC, stocks, etc., indicating a favorable period for entry.
6. Golden Cross at 103.1: This critical level needs to hold, albeit, in the short term, it's likely to continue straining risk-on assets, orchestrating a market strangle.
(Note: Thorough personal analysis and risk management are crucial before making any trading or investment decisions.)
DXY short term Shorts to 105.200SCENARIO 1 - This is my bias for the dollar index (DXY) which gives us extra confluence for my two GBPUSD & EURUSD temporary longs that I have recently posted. As they have a negative correlation between them it gives our trade ideas more confirmation. Im currently expecting price to react as it's in a 8hr supply zone and distribute to eventually sell off towards 105.200 or even lower possibly to 104.700. Once price reaches there we will then expect the dollar to push back up again from those POI's below ( 6hr or 4hr demand zone.)
My confluences for dollar (DXY) shorts are as follows:
- Price changed character to the downside on the higher time frame as well as broke structure indicating the shift in trend has become bearish.
- Price entered an 8hr supply zone that has caused this break of structure to the downside.
- Momentum has slowed down (a good sign that price wants to go back down.)
-Wyckoff distribution taking place to liquidate any previous buyers that was in profit to then allow us to enter the best possible sell position down towards the designated target.
- A few Imbalances have been left below that it must come back and fill.
- Lots of liquidity below as well to target in the form of untouched Asia lows and engineering liquidity.
P.S. Obviously as this is not the only possible scenario, price could also go higher and react off the 6hr supply zone above current price and mitigate that extreme zone to then sell off from there. Either way we are anticipating a drop to follow the bearish trend that has been formed.
Dollar Show Signs of Flat Price Action until Year-End
Here is an important update regarding the current state of the dollar and its potential price action for the remainder of the year. It is crucial to approach the subject with caution and consider the implications for your investment decisions.
Over the past few months, the dollar has exhibited signs of flat price movement, showing limited volatility and a lack of clear direction. This trend is likely to persist until the end of the year, as various economic factors and market uncertainties continue to influence its performance.
While it is tempting to engage in active investing in the Dollar Index (DXY) during such periods, it is important to exercise prudence and carefully evaluate the potential risks involved. The lack of significant movement in the dollar can make it challenging to achieve substantial returns within a short timeframe.
Considering these circumstances, I encourage you to pause your DXY investing activities and reassess your strategies accordingly. It is crucial to remain vigilant and closely monitor market developments, as sudden shifts in global economic dynamics or geopolitical events could potentially disrupt the current flat price action.
As traders, it is essential to adapt to the prevailing market conditions and adjust our investment approaches accordingly. This period of relative stability in the dollar can provide an opportunity to diversify our portfolios and explore alternative investment options that may offer better potential returns.
I urge you to consider this cautious approach and take the necessary time to evaluate your investment strategies. By doing so, you can ensure that your capital is deployed wisely and in alignment with the prevailing market dynamics.
Thank you for your attention, and I wish you continued success in your trading endeavors.
Dollar fell sharply, reaching its lowest levelThe dollar index fell below 105.5 on Tuesday, its lowest in a month, as U.S. Treasury yields fell as investors continued to assess the outlook for the Federal Reserve's monetary policy. .
The benchmark 10-year Treasury yield fell from 5% on Monday after Pershing Square's Bill Ackman said he hedged short positions in bonds due to geopolitical risks on the day. .
Fed Chairman Jerome Powell said last week that current policy is less hawkish and that the Fed is proceeding with caution and will decide its next steps based on future indicators, changes in the outlook, and balance sheet risks. .
Investors are now awaiting U.S. GDP data and the Fed's preferred inflation indicators to be released this week for further guidance ahead of next week's central bank policy decision.
DXY CREATED A HEAD AND SHOULDER PATTERNDXY confirmed a breakout on the trend line formed and yet after some consolidation we have seen the DXY created a head and shoulder pattern for a potential bearish perspective. Here we witnessed a breakout on the neckline after completing the right shoulder of the structure. Now we expect a potential downside momentum with the confirmation towards the 104.430 to 102.940 levels
EURUSD Highs Vs. The Dollar Lows?Hi traders. EURUSD is showing alot of bullish push today. The question we must ask ourselves is is this a strong bullish push?Can the buyers take control. If so, EURUSD may have a great buying opportunity in the near future.
The dollar is showing weakness today. The question is, are the sellers taking control?If so, it can give EURUSD the bullish push it needs to continue higher.
Let me know what you think by commenting below. Remember to add value and be respectful.
Like the video for more and I'll keep you updated on the movement.
-Shaquan