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Dollar Index Futures DX1!

Complete Dollar (DXY) Top Down Analysis =Where Is It Headed Now?Traders and Investors, Dollar has been on a run again and it is moving towards our multi year target of 113 which we predicted nearly 2 years ago. Although it completed a W pattern and was inside an FCP zone, it did not have a substantial correction. On smaller time frames, it showed a little retaracement but that was not enough. The strength in dollar is taking it to our next multi year target of 113 zone. This zone again will have potential to push the price down or at least sow it a bit. After that we will have 116 as a new intermediate resistance followed by 127 zone. In this DXY (Dollar) technical analysis we will study few scenarios which can help in understanding what is about to come next few days/weeks. Please support this analysis by liking and sharing. 👍🙂 Rules: 1. Never trade too much 2. Never trade without a confirmation 3. Never rely on signals, do your own analysis and research too ✅ If you found this idea useful, hit the like button, subscribe and share it in other trading forums. ✅ Follow me for future ideas, trade set ups and the updates of this analysis ✅ Don't hesitate to share your ideas, comments, opinions and questions. Take care and trade well -Vik ____________________________________________________ 📌 DISCLAIMER The content on this analysis is subject to change at any time without notice, and is provided for the sole purpose of education only. Not a financial advice or signal. Please make your own independent investment decisions. ____________________________________________________
TVC:DXYShort
by vikinsa
DXY Two levels it can reverse massively on this 30 year Channel!The U.S. Dollar Index (DXY) has been rising all year in the aftermath of the Fed to decide to raise the interest rates in their battle to lower the extreme levels of inflation. As a result, the USD has been gaining against the basket of major world currencies. From a technical perspective though, the time is approaching that it may reverse massively downwards as it is meeting two key long-term rejection levels. The first and most important is the top (Lower Highs trend-line) of the 30 year Channel Down pattern, which started after the August 1992 Low! As you see this Channel has so far two Lower Lows (green arrows) and two Lower Highs (red arrows). The most recent of the latter was printed on last week's 1W candle. The price hit the top of the Channel Down and got instantly rejected. However, with this week's worse than expected CPI, we see the current 1W candle in green, attempting to hit the top again. Until we close a weekly candle above it, we have to consider this level as a possible long-term trend reversal/ rejection for the DXY. If the USD Index does break and close above it, then we will come across very quickly another key long-term rejection level, and that is the Higher Highs trend-line of the 13 year Channel Up pattern that started in the aftermath of the Housing Crisis in 2009. As you see, so far the Higher Highs trend-line has made three contacts with that line (red Flags). The next (if the Channel Down breaks) should be around 114.00. That is the second long-term candidate level for rejection. This historic price action shows that potentially, going short at the current levels on the U.S. Dollar, offers a low Risk high Return set-up, at least on the long-term. Of course, the macroeconomic environment has to keep up in order for the technicals to play out, especially being in this highly inflationary environment. A key factor is the Fed's Interest Rate (blue trend-line). As mentioned above, this has been rising since the start of the year, causing this parabolic rally on DXY. We see that in the course of the past 30 years, every time the Interest Rate dropped, the DXY was following downwards. As a result, if the Fed decides by the start of next year that the job has been done and that inflation may be (partially at least) controlled, the can start cutting the Interest Rate back in order to stimulate the stock market, which has been suffering all year long. A mere hint/ announcement by the Fed of such intention early, can cause the DXY to reverse before the Interest Rate even starts decreasing, as it happened after 2006. The times we live in are unique in terms of the fundamentals and more likely than not the battle to control an inflation caused by years of abuse can take an equal amount to years. At last, if you are a long-term investor looking for a confirmed level to sell, that would be below the Higher Lows trend-line, as it happened in December 2002. -------------------------------------------------------------------------------------------------------- ** Please support this idea with your likes and comments, it is the best way to keep it relevant and support me. ** --------------------------------------------------------------------------------------------------------
TVC:DXYShort
by TradingShot
9
USD Cup & Handle BreakoutIt has been a rather long time since I looked at the US Dollar Index Futures chart. Pulled out the chart and surprise! Since June 2022, the weekly USD chart had actually completed a Cup & Handle pattern, retested the resistance turned support at 105, and now is on a tear rocketing upwards. Technical indicators although stretched for a bit, appear to have renewed momentum, crossing over and upwards in alignment. The daily chart shows some level of stalling in late August, and pushed further upwards late last week, closing at a multi-year high. In an inflationary environment, with the Fed bent on continuing to raise rates and accepting painful costs, the USD is likely to rise further. Cup & Handle pattern projections put it above 120. This has many many implications, both as the USD rises, and when the USD is categorically above 110, 115 and 120. This USD move will be the backdrop of many new trends over the next couple of months to years, giving traders and investors many opportunities if handled correctly. Watch for them!
ICEUS:DX1!Long
by Auguraltrader
3
USD technicals damaged Looking at the USD futures, and interesting picture is starting to prevail... The weekly chart is heading to a lower USD in the next couple of weeks. and to resume uptrend, it needs to reclaim above the green resistance line, which is unlikely at current status. RPM and MACD are burnt out and crossed down to a moderation in the coming weeks. The daily chart accentuate that view as the FOMC rate raise of 75bp yesterday closed the day with a bearish daily candle and a lower low clocked today... so downside to the support over the next couple of weeks is likely. Technical indicators are all bearish crossed down too. This has big picture effects... on equities, and commodities, which will be pushing up again, stoking more inflation. This is a major consideration in all my analyses going forward. Much discussions going on everywhere about the economics of it, but the charts seems to reflect that the expectation is where the FOMC is done with raising rates for now... at least. Watch what happens when the support level is met...
ICEUS:DX1!
by Auguraltrader
Strong Dollar makes is tough on other marketsUS Dollar – Weekly continuous: Surpassed the Primary recover target at 102.25 and making highs not seen for 20 years. My opinion. Cash commodities can struggle to keep upward momentum when US Dollar is strong. The world is experiencing a financial crisis it has not seen for several decades. The 07/08 recession Primarily hit the US with the Housing market bust and Dollars fled the US to other stronger currencies/assets. US Ag commodities were very volatile in the period but mostly strong with a weak dollar. If EU and Asian markets remain weak, safe haven assets like the Dollar could remain elevated to extremely high…Yet to be determined. Open interest is/has been low in the commodity space, and we recently witnessed what a liquidity drain out of our markets from the big money can do. Major swings up and down to be expected in the nearby future.
ICEUS:DX1!
by mtb1980
DX1! - Dollar Index looks creepyOK, that's creepy to me. On this long term chart we see that price respects the Pitchfork very nicely. But that's not creepy, that's what I see day in and out. But here it comes: IF this is a monster Bull Flag we see in the grey shaded area, the USD will explode to the upside in the comming months. That means, that with the higher and higher inflation in the US, daily goods become even more expensive, and at the same time, exporting becomes harder and harder. Now, to stay competitive to the world with exports, the governments usually intervene by manipulating the currency down. BUT now we face a huge problem: The FED has printetd money endlessly...billions and billions, and that caused the mess, the inflation. Yes, it's not the Virus, it's the "Cocain" for the gamblers that was printed. So, what would be necessery to manipulate the USD down? Printing money? But, they should STOP printing money so that the inflation can be tamed. Oh..ough..I think someone is trapped very, very bad. I have no clue how this kneel could be unwinded without kinda reset, or the hard but efficient way of Paul Volker. It would be equivalent to the very, very bad headache after the furiousest party ever celebrated. (borrowed from Maverick Of Wallstreet on YT). Oh, yes, you're right: The wealthiest got the party, the headache is for the crowd. 1.20 is the mark so far. Cheers...
ICEUS:DX1!Long
by Tr8dingN3rd
US Dollar Breaks 5-Year High!In last week’s post, I highlighted that the US Dollar was being held at a major resistance level and was preventing price from climbing any higher. So far this week, price has broken through. Closing prices are more critical than intraday movement, so although price is above resistance, it does not mean it will stay above it at the end of the business day. This resistance has held strong for over five years, so it will take a lot of momentum from the buyers to keep price above resistance at $103. The resistance level is actually the high of a large area of consolidation, with the support low at $90. Following a breakout of the high, we need to see a pattern of higher highs to confirm that a trend is forming. This will reduce the likelihood of price returning into the consolidation zone. If you like enjoyed this post, make sure to like, and follow for more quality content! If you have any questions or comments, comment below. We reply to every comment! See below for more information on our trading techniques. As always, keep it simple, keep it Sublime.
ICEUS:DX1!Long
by Sublime_Trading