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Dxyidea

What is DXY doing and why it matters?Technical Analysis: * Price is above 200EMA and above both 14&21EMA, and are acting as support. * RSI is above 55, indicating good buyer strength. * RSI has broken the downward trend line and is retesting that trend line. Trade Idea: To be a good and comprehensive trader, its always a good practice to check correlations of other forex pairs and indices so as to get that extra confirmation and confidence on your trade analysis. So, in this post, I will be demonstrating how the Dollar Index is expected to move in the coming weeks or even days so every trader knows what to look out for. DXY is currently in a range bound market. As of now, we can see the 200EMA in combination with 14&21EMA are both acting as support, so with favourable price action, I am expecting one more leg up from the dollar index to the yellow trend line before reversing back down to the recent major support zone. As extra confirmation, the RSI has also broken the downward trend line and is bouncing off that trend line, indicating that buyers are most likely to gain more strength than sellers, hence will likely push the index higher in the coming days. Overall, DXY is expected to be bullish at least for this week. So, traders who are holding major pairs such as EURUSD, GBPUSD, USDJPY, USDCAD, USDCHF, AUDUSD, NZDUSD should pay close attention to this. #tradesafe
TVC:DXY
by JKFXTrading
DXY Price Outlook: $USD Reversal ThreatensThe Dollar weakened against every single G10 currency on Thursday after terrible US economic data fuelled concerns over the health of the largest economy in the world. The US Dollar has been making sharp moves as the only market trading in the green in the current economic crisis. On the US Dollar Index ( DXY ), the greenback has been living up to its name by making steady gains since the 9th of March, rising from below 95 points to above 101, the highest it has been since 2017. This gain in the USD has been due to the fact that investors are now pulling out of other markets due to their extreme volatility , and withdrawing it back to liquid cash. The global economic uncertainty has caused the markets to fall with no bottom in sight. The Trump administration recently announced a stimulus plan of $1 trillion, the largest of any country, as a response to the current chaos in the markets. As part of this plan, the government said they were talking about sending cheques of up to $2000 per month in order to offset loss of income, as well as being able to defer up to $1 million in income taxes. Nearly 3.3 million Americans applied for unemployment benefits last week which was more than triple the previous record set in 1982 amid the widespread economic shutdown caused by the pandemic. These figures are certainly a shocking reflecting of how badly the coronavirus has hit theeconomy with the pace of layoffs expected to jump as the United States sinks into a recession. Dollar weakness could become a short term theme if economic data continues to paint a gloomy picture, despite the efforts of the Federal Reserve and Senate to promote stability. Looking at the technical picture, the Dollar Index is under intense pressure on the daily charts with prices trading around 99.90. A solid daily close below this level could open a path towards 99.00
TVC:DXY
by cyrex