Dollarindex
DXY is weakening after soft CPI dataHey Traders, in today's trading session we are monitoring DXY for a selling opportunity around 105.100 zone, DXY is trading in a downtrend and currently is in a correction phase in which it approaching the trend at 105.100 support and resistance area.
Fundamentally the recent CPI data was quiet soft and didn't exceed 0.3.
Trade safe, Joe.
The dollar will capitulate and then soar!Updating my TVC:DXY predictions:
1. Everything hinges on carry trade with Japan
2. Japan is raising rates until they resubmit to negative interest rates this summer
3. The USDJPY will plummet until summer, this will cause the dollar to go down which increases inflation in the USA and deflation everywhere else due to the dollar being a reserve currency.
4. I believe the FED will cause inflation to go higher kicking the can down the street
5. After this summer the dollar will explode to over 140+ killing all other currencies as they print to escape deflationary depression.
6. The dollar will finally explode making way for CBDC's
7. Gold, Bitcoin, Rupee will be my final three picks for the end of 2030 for best assets and currencies. Of course you'll want a farm and freeze dried food for the coming collapse.
Will the Dollar continue its Downtrend or change its Direction?The dollar index #DX1! respected its previous downtrend and the News about CPI (Consumer Prices) today helped with this movement to the downside.
Will the Dollar continue its Downtrend or will change its Direction to the Upside?
CPI m/m
Actual: 0.3%
Forecast: 0.4%
Previous: 0.4%
Empire State Manufacturing Index
Actual: -15.6
Forecast: -9.9
Previous: -14.3
"The dollar index, which measures the greenback against a basket of major currencies including the yen and the euro, fell to a one-month low at 104.41, but later pared losses to trade 0.25% lower at 104.77".
References:
-https://www.forexfactory.com/index.php
-https://www.reuters.com/markets/currencies/dollar-droops-ahead-crucial-cpi-test-yen-under-pressure-2024-05-15/
Gold analysis for 13/05/24 & 14/05/24According to my analysis and according to what you taught me, Tamas :
Scenario 1 :
If CPI comes negative on Wednesday, it could lead to deflation concerns, which might prompt the Federal Reserve to consider cutting interest rates to stimulate economic activity and prevent deflationary pressures. A negative CPI could indicate a decrease in the general price level of goods and services, potentially signaling weak demand or economic contraction
A decision by the Federal Reserve to cut interest rates could weaken the dollar, as lower interest rates typically make a currency less attractive to investors seeking higher yields. This could lead to a depreciation of the dollar index, which measures the value of the dollar against a basket of other currencies
Gold prices may rise in response to a potential interest rate cut by the Federal Reserve. Lower interest rates typically decrease the opportunity cost of holding non-interest-bearing assets like gold, making it more attractive to investors. Additionally, concerns about inflation and currency depreciation amid monetary easing measures could further support gold prices , Gold may Target 2394-2400
Scenario 2:
A positive CPI indicates an increase in the general price level of goods and services, suggesting inflationary pressures. This could lead to concerns about the purchasing power of the currency and potential future interest rate hikes by the Federal Reserve to curb inflation
If the PPI also shows an increase on Tuesday, it could reinforce inflationary expectations, indicating rising costs for producers. This might further support the case for potential interest rate hikes by the Federal Reserve to address inflationary pressures
Technical Analysis :
We're currently in Correction Wave , and Expecting Price to Pump for Gold target 2394-2401
Advice : please always use a propre risk management this is my analyse and good luck
Make sure if you like my Analysis to boost up my post and Comment
DXY(Dollar Index):🟢Possible scenarios🟢(Details on caption)Well hello, traders.
Here is my view on the DXY daily chart.
As you can see the price left the buy-side liquidity which formed as an equal high, and then respected to the 50% of bullish FVG which is internal range liquidity. In this condition usually, the price seeks to the external range liquidity.
So the first scenario is bullish and I follow this scenario (High probability scenario)
The second scenario is bearish, if the price respects the bearish order block or mean threshold of this order block we will see the price move down.
All in all, if the bearish order block can not hold the price we will see a bullish week, and if the price respects the bearish order block the weekly candle will be bearish.
💡Wait for the update!
🗓️01/05/2024
🔎 DYOR
💌It is my honor to share your comments with me💌
The Dollar(DXY): Charting the Path to Bullish MomentumGreetings Traders,
I'm observing a sustained bullish institutional order flow in the Dollar, targeting the weekly and monthly buy stops as my buy-side objectives. Currently, we're operating within discount prices, having rebalanced the daily discount Fair Value Gap (FVG) and tapped into the mitigation block, a zone of institutional support. Additionally, price has respected the rejection block and provided a market structure shift, signaling a potential continuation to the upside.
Watch the DXY & GBPUSD Weekly Outlook Video:
Feel free to leave any questions you may have.
Best Regards,
The_Architect
DOLLAR INDEX DXY Bearish Side Heist PlanHola Ola Hello Traders,
This is our master plan to Heist Bearish side of DXY market. kindly please follow the plan i have mentioned in the chart focus on Short entry, Our target is Green Zone it is High risk Dangerous area Consolidation will happen Bull Trend will continue to go Upside.. Be safe and be careful and Be rich.
Loot and escape near the target 🎯
support our robbery plan we can make money take money 💰💵 Join your hands with US. Loot Everything in this market everyday.
Will the Dollar continue his Downtrend? #DXYThis morning we're seeing the Dollar going down due to the Unemployment Claims news.
Will the Dollar continue his Downtrend?
Levels taken from Forex Factory:
Unemployment Claims
Actual: 231K
Forecast: 212K
Previous: 209K
References:
www.forexfactory.com
www.reuters.com
Shorting DXY: A Calculated Gamble on a Weaker DollarShorting DXY: A Calculated Gamble on a Weaker Dollar, But Beware the Dragons
The DXY, or US Dollar Index, measures the greenback's strength against a basket of major currencies. With rising global tensions and a potential shift in global power dynamics, the question lingers: is it time to short the DXY, betting on a weakening dollar? Let's explore the arguments for and against this strategy.
The Case for Shorting DXY: A Multi-Pronged Approach
• America's Shrinking Lead: The US, while still a dominant economic force, faces challenges. Its manufacturing base has shrunk, its national debt is ballooning, and infrastructure crumbles. These factors could erode confidence in the dollar's long-term stability.
• The Rise of the Rest: China's economic power is undeniable. The yuan's internationalization efforts are gaining traction, potentially chipping away at the dollar's dominance as the world's reserve currency. Other economies like the Eurozone are also maturing, offering alternatives.
• A Concerted Effort: Imagine a scenario where the US's major allies, concerned about American dominance, decide to weaken the dollar. This could involve measures like central banks diversifying reserves away from the US or pegging their currencies to a basket that excludes the dollar. While a hypothetical scenario, it can't be entirely dismissed.
China: The Dragon in the Room
China's displeasure with a weakening dollar is a significant risk factor. A weaker dollar makes Chinese exports more expensive, hindering their economic growth. China holds a significant amount of US Treasuries, and a devalued dollar would erode the value of those holdings. This could lead to China dumping US Treasuries, further weakening the dollar in a vicious cycle.
Beyond China: Other Considerations
• US Response: The US Federal Reserve has tools at its disposal to counter a weakening dollar. Raising interest rates, for instance, could entice investors back to the dollar for higher yields.
• Global Instability: A devalued dollar could create global economic turmoil as countries scramble to adjust exchange rates and inflation spikes. This could be particularly damaging for developing economies.
• Unpredictable Markets: Shorting any asset is inherently risky, and the currency market is especially volatile. Unforeseen events can drastically alter currency valuations.
So, Should You Short DXY?
The decision to short DXY depends on your risk tolerance and investment goals. Here's a breakdown:
• For Aggressive Investors: If you believe in a long-term decline of the US dollar and have a high tolerance for risk, shorting DXY could be a potential strategy. However, careful risk management is crucial.
• For Cautious Investors: The potential consequences of a weakening dollar, particularly China's reaction, are significant. It might be wiser to stick with less volatile investments or consider options strategies that limit your downside risk.
Alternative Strategies
Instead of shorting DXY directly, consider these alternatives:
• Invest in a Diversified Currency Basket: Spread your risk by investing in a basket of major currencies, potentially benefiting from a weakening dollar while mitigating some of the risk.
• Look to Emerging Markets: If you believe in the rise of other economic powers, consider investing in their currencies or stocks poised to benefit from a weaker dollar.
The Final Bite
The future of the US dollar is uncertain. A combination of factors could lead to its decline. However, the potential consequences, particularly China's response, are significant risks to consider. Carefully weigh the arguments before taking a short position on DXY. Remember, diversification and a measured approach are key in navigating the ever-fluctuating currency markets.
DXY H4 - Long signal DXY H4
Dollar is moving as expected, bouncing from that 105 price we were marking up and focussing on from last week. Following all the economic data points, support held out and corrected perfectly.
We have since approaching 105.600 price, a key area of S/R. This also ties in with GBPUSD support price. An area where we may see a bit of a correction (as annotated) before seeing the next bullish leg upside.
US dollar Index Analyse for long termBearish Scenario:
Increased Geopolitical Tensions: Escalation of the conflict leads to heightened geopolitical tensions in the Middle East, sparking concerns about regional stability and security.
Risk Aversion: Investors flee from riskier assets, including the U.S. dollar, as uncertainty rises. Instead, they seek refuge in safe-haven assets like gold, driving up gold prices.
Dollar Weakens: The U.S. dollar weakens against major currencies due to risk aversion and concerns about the potential economic impact of the conflict on global markets. This weakens the Dollar Index.
Bullish Scenario:
Resolution of Conflict: Diplomatic efforts or a ceasefire agreement lead to a resolution of the conflict between Israel and Gaza, easing geopolitical tensions in the region.
Market Confidence: Investor confidence improves as the risk of broader regional instability diminishes. This encourages investors to move away from safe-haven assets like gold and back into riskier assets, including the U.S. dollar.
Dollar Strengthens: The U.S. dollar strengthens against other currencies as investors return to dollar-denominated assets, leading to an increase in the Dollar Index.
These scenarios highlight how the resolution or escalation of the conflict can influence investor sentiment, market dynamics, and the direction of both the U.S. dollar and gold prices.
DXY mini wave upward(5/7/2024)After the NFP and unemployment data, The DXY TVC:DXY faced a big correction.
In this week, we believe this week is going to be calm because USD has no game-changing data.
there is a possibility that the DXY is going to make some retracements in an upward direction.
Our technical view has been shown in the chart.
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Thanks For Reading
Team Fortuna
-RC
(Disclaimer: Published ideas and other Contents on this page are for educational purposes and do not include a financial recommendation. Trading is Risky, so before any action do your research.)
DXY H8 - Long SignalWe are into some typical trading volume after the bank holiday period. 105 support seems to be holding nicely for the moment, more volume to flow in as we see in NA morning and US stock market open.
Really hoping to see the dollar gain from here and therefore looking for *USD shorts and USD* longs.
Dollar Index (DXY): Important Key Levels 💵
Here is my latest structure analysis and important
key levels to watch on Dollar Index.
Support 1: 103.88 - 104.1 area
Support 2: 102.93 - 103.25 area
Resistance 1: 105.41 - 105.58 area
Resistance 2: 106.37 - 106.52 area
Consider these structures for pullback/breakout trading.
❤️Please, support my work with like, thank you!❤️
DXY IS EXPECTING ANOTHER MOVE TO THE SOUTHDXY has validated a bearish breakout below the lower boundary of its ABC pattern, indicating a potential decline back towards the key level at the bottom. We anticipate a decrease of approximately -1.5% in the DXY index.
The confirmation of this breakout is crucial, as the entire projection hinges upon it. Such a move could prompt bullish momentum in the near future across major XXXUSD pairs.
DXY (dollar index) weekly ideaCurrently, the dollar trend indicates a bearish direction, suggesting that pairs I typically trade, such as GU, EU, and gold, may rise. Presently, I anticipate a retracement to occur towards an 8-hour supply zone I've identified, facilitating the continuation of the bearish trajectory.
This ideally aligns with my strategy until the price drops to around the 104 level, potentially sparking a bullish rally upwards. At that point, I'll need to seek selling opportunities for my other pairs. The dollar's price action appears clear, and there are still imbalances below that require fulfilment.
Have a great trading week guys!
Yen Wobbles, Gold Gleams: A Stirring in Global Currency MarketsThe foreign exchange market witnessed a tug-of-war this week, with the Japanese yen (JPY) taking center stage. Speculation surrounding potential intervention by Japanese authorities to prop up the weakening yen against the US dollar (USD) sent ripples through the currency landscape. Meanwhile, the US Dollar Index (DXY), a broad measure of the greenback's strength, dipped, impacting the price of gold, which became more attractive to some buyers.
The Yen's Woes: Intervention or Market Forces?
The Japanese yen has been on a depreciating streak recently, driven by a widening gap between Japanese and US interest rates. Japan's central bank, the Bank of Japan (BOJ), maintains an ultra-loose monetary policy with near-zero interest rates, while the US Federal Reserve is signaling a more hawkish stance with potential interest rate hikes on the horizon. This disparity makes yen-denominated assets less appealing to investors seeking higher returns, pushing the yen's value down.
The recent rumors of intervention suggest that Japanese authorities are concerned about the rapid depreciation of the yen. A weaker yen can be a double-edged sword. While it makes Japanese exports more competitive in the global marketplace, it also pushes up the cost of imported goods, leading to potential inflationary pressures within Japan.
Intervention's Effectiveness: A Double-Edged Sword
Currency intervention involves a central bank buying or selling its own currency to influence its exchange rate. In this case, buying yen would aim to strengthen it against the dollar. However, the effectiveness of such interventions depends on various factors.
• Market Sentiment: If the market heavily anticipates further depreciation, a one-time intervention might have a limited impact. The BOJ would need to signal a sustained commitment to supporting the yen for a more significant effect.
• Ammunition: Intervention requires significant financial resources. The BOJ's foreign exchange reserves would play a crucial role in its ability to sustain intervention efforts.
The Greenback's Sway: DXY Dips, Gold Gleams
The US Dollar Index (DXY) gauges the value of the US dollar relative to a basket of major currencies, including the euro (EUR), the Japanese yen (JPY), the British pound (GBP), and others. This week's dip in the DXY indicates a weakening of the US dollar against this basket of currencies.
This can be attributed to several factors, including:
• Profit-taking: After a period of strength, some investors might be taking profits from their dollar-denominated holdings.
• Global Risk Aversion: Increased global uncertainty due to geopolitical tensions or economic concerns can lead investors to seek haven currencies, potentially weakening the dollar.
Gold's Allure: A Beneficiary of a Weaker Dollar
Gold is often perceived as a safe-haven asset during times of market volatility or economic uncertainty. When the US dollar weakens, gold becomes cheaper for buyers holding other currencies. This week's dip in the DXY could be contributing to some increased interest in gold.
However, gold's price is influenced by various factors beyond the dollar's strength. Interest rates, inflation, and investor sentiment all play a role.
Looking Ahead: A Dynamic Landscape
The global currency market remains a dynamic environment, and the events of this week highlight how various factors can interact and influence exchange rates. The future direction of the yen and the DXY will depend on a combination of economic data releases, central bank actions, and broader market sentiment.
Here are some key factors to watch in the coming days:
• BOJ Policy Statements: Any signals from the BOJ regarding potential adjustments to its monetary policy could impact the yen's valuation.
• US Economic Data: Upcoming US jobs reports and inflation data can influence the Federal Reserve's monetary policy decisions, potentially impacting the DXY.
• Geopolitical Developments: Global events with significant economic implications can trigger market volatility and impact currency valuations.
By staying informed about these developments, market participants can make informed decisions about their currency positions and potentially take advantage of market opportunities.