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DJ FXCM Index

DXY 1W Forecast until March 2025Consolidation below 106 will last until October 2024. Breakout will happen in October peaking at 111-112 followed by a retest (mid November 2024 - January 2025). Further upward movement + correction will happen in January-March 2025 between the top of 113-114 and the bottom of 105-ish. Consecutive HH and HL will be followed by rapid increase in pace of changes: time will shrink and levels will expand. This will mark the start of hard times of Greatest Depression in March 2025 sending all markets down and making USD the king.
INDEX:DXY
by discarding
USDT Dominance Breakdown Ahead?USDT Dominance (USDT.D) has formed a bearish inverted cup and handle pattern, pointing to a big move soon! The weekly chart of USDT dominance shows a clear bearish inverted cup and handle pattern, with a significant breakdown below the neckline. The projected target suggests a potential 60% decline, which could take the dominance to the 1.6-2% range. This might indicate a shift in market dynamics, with capital rotating from stablecoins into altcoins or Bitcoin. A key moment to watch for crypto traders. What’s your take on this? Could this spark an altcoin rally?
CRYPTOCAP:USDT.DLong
by CRYPTOMOJO_TA
4
Buy USD/CHF Channel Breakout for next CPI DATAThe USD/CHF pair on the M30 timeframe presents a potential Buying opportunity due to a recent downward breakout from a well-defined Bullish Channel pattern. This suggests a shift in momentum towards the upside in the coming Hours. Key Points: Buy Entry: Consider entering a Long position around close to the breakout level. This offers an entry point near the perceived shift in momentum. Target Levels: 1st Support – 0.8848 2nd Support – 0.8888 Your likes and comments are incredibly motivating and will encourage me to share more analysis with you. Best Regards, KABHI FOREX TRADING Thank you.
Long
by KABHI_TA_TRADING
27
GBPUSD: Channel Up attempting a 4H MA200 cross.GBPUSD is neutral on its 1D technical outlook (RSI = 49.376, MACD = -0.004, ADX = 36.982) as despite having started a Channel up since the November 22nd bottom, this is after a long term bearish trend that only now will determine if it will switch to bullish or not. Today was in fact the 2nd rejection on the 4H MA200 but at the same time, the 4H MA50 is supporting. This range makes the 4H timeframe neutral as well. If the MA50 continues to hold and the 4H MA200 is crossed with a full candle close, then we will take a short term long, aiming under the 2.382 Fibonacci extension (TP = 1.29000). See how our prior idea has worked out: ## If you like our free content follow our profile to get more daily ideas. ## ## Comments and likes are greatly appreciated. ##
Long
by InvestingScope
EURUSD Crucial test on the 4H MA200. Bullish if broken.The EURUSD pair has been trading within a Bearish Megaphone since the September 30 High, which is technically the Bearish Leg of the long-term Channel Down pattern, which we saw on our previous analysis. Having found support on the 4H MA50 (blue trend-line), the pair appears to be attempting another test on the 4H MA200 (orange trend-line), which rejected the last Lower High (November 05) and has been intact since October 01, making it practically the basic long-term Resistance. As a result, if the 4H MA200 breaks, the top (Lower Highs trend-line) of the Bearish Megaphone should follow too, which will cause a technical medium-term break-out. Our Target is the 0.618 Fibonacci retracement level at 1.08765. You may use the Higher Lows trend-line as an additional tool to determine if the break-out will be successful as last time (November 05) the failed to hold and caused the new Bearish Low of the Megaphone. Similar analogy with the 4H RSI Higher Lows trend-line. ------------------------------------------------------------------------------- ** Please LIKE 👍, FOLLOW ✅, SHARE 🙌 and COMMENT ✍ if you enjoy this idea! Also share your ideas and charts in the comments section below! This is best way to keep it relevant, support us, keep the content here free and allow the idea to reach as many people as possible. ** ------------------------------------------------------------------------------- 💸💸💸💸💸💸 👇 👇 👇 👇 👇 👇
by TradingShot
Sell GBP/USD Channel BreakoutThe GBP/USD pair on the M30 timeframe presents a potential selling opportunity due to a recent downward breakout from a well-defined Channel pattern. This suggests a shift in momentum towards the downside in the coming Hours. Key Points: Sell Entry: Consider entering a short position around close to the breakout level. This offers an entry point near the perceived shift in momentum. Target Levels: 1st Support – 1.2668 2nd Support – 1.2620 Your likes and comments are incredibly motivating and will encourage me to share more analysis with you. Best Regards, KABHI FOREX TRADING Thank you.
Short
by KABHI_TA_TRADING
13
Bullish bounce?US Dollar Index (DXY) is falling towards the pivot and could bounce to the 1st resistance that has been identified as a pullback resistance. Pivot: 105.16 1st Support: 103.68 1st Resistance: 106.96 Risk Warning: Trading Forex and CFDs carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Forex and CFDs may not be suitable for all investors, so please ensure that you fully understand the risks involved and seek independent advice if necessary. Disclaimer: The above opinions given constitute general market commentary, and do not constitute the opinion or advice of IC Markets or any form of personal or investment advice. Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, are intended only to be informative, is not an advice nor a recommendation, nor research, or a record of our trading prices, or an offer of, or solicitation for a transaction in any financial instrument and thus should not be treated as such. The information provided does not involve any specific investment objectives, financial situation and needs of any specific person who may receive it. Please be aware, that past performance is not a reliable indicator of future performance and/or results. Past Performance or Forward-looking scenarios based upon the reasonable beliefs of the third-party provider are not a guarantee of future performance. Actual results may differ materially from those anticipated in forward-looking or past performance statements. IC Markets makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or any information supplied by any third-party.
TVC:DXYLong
by ICmarkets
Sell USD/JPY Channel BreakoutThe USD/JPY pair on the M30 timeframe presents a potential selling opportunity due to a recent downward breakout from a well-defined Channel pattern. This suggests a shift in momentum towards the downside in the coming Hours. OANDA:USDJPY Key Points: Sell Entry: Consider entering a short position around close to the breakout level. This offers an entry point near the perceived shift in momentum. Target Levels: 1st Support – 148.82 2nd Support – 148.18 Your likes and comments are incredibly motivating and will encourage me to share more analysis with you. Best Regards, KABHI FOREX TRADING Thank you.
Short
by KABHI_TA_TRADING
5
US DOLLAR Weekly Forex Forecast: Look For BUYS This Week!USD INDEX is bullish for the short term... but bearish in the longer term. This week will have opportunities for short term long positions. Just be mindful not to swing for home runs! The larger pullback seems to have started, so the bears are coming! Enjoy! May profits be upon you. Leave any questions or comments in the comment section. I appreciate any feedback from my viewers! Like and/or subscribe if you want more accurate analysis. Thank you so much! Disclaimer: I do not provide personal investment advice and I am not a qualified licensed investment advisor. All information found here, including any ideas, opinions, views, predictions, forecasts, commentaries, suggestions, expressed or implied herein, are for informational, entertainment or educational purposes only and should not be construed as personal investment advice. While the information provided is believed to be accurate, it may include errors or inaccuracies. I will not and cannot be held liable for any actions you take as a result of anything you read here. Conduct your own due diligence, or consult a licensed financial advisor or broker before making any and all investment decisions. Any investments, trades, speculations, or decisions made on the basis of any information found on this channel, expressed or implied herein, are committed at your own risk, financial or otherwise.
TVC:DXYLong
by RT_Money
2
"GBP/USD Breaks the Channel: A Bold Move to Reverse the Trend"The GBP/USD currency pair appears poised for potential growth as it approaches a critical breakout from the local trend resistance, supported by a broader correction in the U.S. dollar. This scenario emerges amidst weakening economic signals from the U.S., which are challenging the Federal Reserve's optimistic narrative. ### A Shift in Dynamics: Dollar Weakness and GBP Momentum The U.S. dollar, long buoyed by hawkish Fed policies and resilient economic data, now faces increasing pressure. Yesterday's negative jobless claims data raised concerns about the strength of the labor market. All eyes are on today’s Non-Farm Payrolls (NFP) report, as worse-than-expected results could deepen the dollar's correction. Such developments would underscore cracks in the U.S. economy, contradicting recent remarks by Fed Chair Jerome Powell, who suggested economic stability. This uncertainty opens the door for forex currencies, including GBP, to stage a rally. ### Technical Outlook: Breakout with Potential Upside From a technical perspective, GBP/USD is showing early signs of strength, with the retest of the intermediate bottom producing clear reversal candlestick patterns and a potential shift in market structure. The breakout from the existing price channel is a promising signal that could mark the beginning of a strong upward momentum. However, market sentiment remains cautious, with traders awaiting further confirmation before fully committing to a bullish trajectory. Key **resistance levels** to monitor include 1.284 and the psychological level of 1.300. On the downside, **support levels** are established at 1.272, 1.261, and 1.2488. A sustained break above 1.284 could pave the way for a medium-term rally toward 1.300, while a false breakout could trigger a reversal, sending the price back toward 1.272 and potentially as low as 1.240. ### Zones of Interest: Bullish Scenario Currently, the pair is positioned within a favorable zone for growth, with positive signs indicating a medium-term rise from 1.275 to 1.300. A strong push above these levels could signal a broader trend reversal, attracting further buying interest. ### Bearish Risks: What to Watch For Despite the positive setup, risks remain. Should the pair fail to sustain its breakout and fall back below 1.272, bearish momentum could accelerate. This would open the door for a decline toward 1.240, especially if the NFP data exceeds expectations and strengthens the dollar temporarily. ### The Big Picture: Caution vs. Opportunity While the technical signals are promising, the sustainability of GBP/USD’s potential rally largely depends on the evolving narrative surrounding the U.S. dollar. A prolonged correction in the dollar, driven by weaker economic data, would provide the perfect backdrop for GBP to gain traction. However, any surprises in upcoming U.S. reports or shifts in Fed policy expectations could quickly dampen bullish sentiment. For now, GBP/USD is at a pivotal moment. A breakout from its current resistance could serve as a launchpad for significant gains, but traders should remain vigilant, balancing optimism with the risks posed by a potentially resilient dollar.
Long
by lonelyPlayer0
USD Index // Preparation for the ExpansionThe Dollar Index is bearish on the daily, within the valid daily countertrend. The H4 long countertrend is also valid, and since in this trend, there is no space to trade, I'm waiting for the market to turn south in the direction of the daily short trend. My trigger is at the H4 breakout. Once this level is broken, I'm in to ride the wave down to the daily breakout (blue) and maybe to the weekly breakout (purple). The correction fibo is drawn with thin black dashed lines, and 38.2 is pretty much in line with the daily breakout, therefore, a nice target. Going for the correction fibo 50 is a bit more risky, and there is the weekly breakout along the way. Stay Patient, Stay Disciplined! 🏄🏼‍♂️ And feel free to express your opinion in the comments! 🙂
TVC:DXY
by TheMarketFlow
Weekly Forex Forecast: USD is Bullish In The Short Term!The USD Index closed last week very bearish, trading through the previous week's low. A pullback makes sense for this week, at least for the beginning of it. With NFP coming on Friday, trading up until Wed may be the safest way to go. Check the comments section below for updates regarding this analysis throughout the week. Enjoy! May profits be upon you. Leave any questions or comments in the comment section. I appreciate any feedback from my viewers! Like and/or subscribe if you want more accurate analysis. Thank you so much! Disclaimer: I do not provide personal investment advice and I am not a qualified licensed investment advisor. All information found here, including any ideas, opinions, views, predictions, forecasts, commentaries, suggestions, expressed or implied herein, are for informational, entertainment or educational purposes only and should not be construed as personal investment advice. While the information provided is believed to be accurate, it may include errors or inaccuracies. I will not and cannot be held liable for any actions you take as a result of anything you read here. Conduct your own due diligence, or consult a licensed financial advisor or broker before making any and all investment decisions. Any investments, trades, speculations, or decisions made on the basis of any information found on this channel, expressed or implied herein, are committed at your own risk, financial or otherwise. Transcript
TVC:DXY
by RT_Money
USDJPY: Technical buy opportunity on RSI fractal.USDJPY turned bearish on its 1D technical outlook (RSI = 41.175, MACD = -0.460, ADX = 31.807) as it crossed under its 1D MA50 and has failed to recover it this week. Yet, this is technically a buy opportunity in disguise as this is the exact same pattern that the price did on the March 24th 2023 Low. After the initial bullish wave start of the long term Channel Up, the price pulled back again and formed that low with the RSI at 37.000. This is the level it is right now as well. We expect the bullish wave to resume the uptrend like it did then. We are again targeting the 1.786 Fibonacci extension, only a bit lower on the R1 level (TP = 161.870). See how our prior idea has worked out: ## If you like our free content follow our profile to get more daily ideas. ## ## Comments and likes are greatly appreciated. ##
Long
by InvestingScope
AUDUSD touching important Support on Daily ChartThe AUD/USD pair has experienced a notable decline of -7.82% in recent weeks, without any significant recoveries. This drop has brought the price to a key horizontal support area, aligning with the previously identified triple bottom level on the daily chart. Additionally, the price has tested an uptrend line that has provided support since mid-2022. The overlap of the horizontal support and the uptrend line creates a technically significant zone, indicating a potential slowdown in selling pressure. Bullish Scenario If the price breaks above the downtrend line, acting as dynamic resistance, it could signal a shift in market sentiment, allowing buyers to regain control. Fibonacci retracement levels would then serve as potential targets: An entry point could be considered if a candle closes above the downtrend line on the daily chart. The first target may be near the 38.2% Fibonacci level at 0.6605 (approximately 110 pips). The second target could be around the 50.0% Fibonacci level at 0.6670 (about 170 pips). A stop loss might be placed just below the recent low at 0.6395 (around 100 pips). For confirmation of the bullish scenario, the price needs to stay above the dynamic resistance and begin forming higher highs and lows. Bearish Scenario Conversely, if the price falls below the horizontal support at 0.6400, it would create room for further declines, potentially invalidating the triple bottom pattern and indicating a continuation of the downtrend. In this case, the next significant support level would be around 0.6300, with chances of moving even lower. Impact of US Employment Data The upcoming US employment data, particularly the Nonfarm Payroll figures, could significantly influence the AUD/USD pair. Weaker-than-expected results may weaken the US dollar, benefiting the Australian dollar and increasing the likelihood of breaking the downtrend line. Conversely, strong US labor market data could exacerbate selling pressure, pushing AUD/USD lower. Summary The AUD/USD is at a pivotal juncture on the daily chart, with the convergence of horizontal support and an uptrend line suggesting a possible reversal. However, the market's direction will hinge on subsequent technical movements and, crucially, on US economic data that could shift the balance of power. Disclaimer: 74% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Past performance is not necessarily indicative of future results. The value of investments may fall as well as rise and the investor may not get back the amount initially invested. This content is not intended for nor applicable to residents of the UK.
Long
by Marketscom
USDJPY: My Trading Perspective (setup)FX:USDJPY : Key Indices Supporting My Trading Perspective Index and Volume Analysis: - For this trade, the TVC:DXY (U.S. Dollar Index) plays a critical role. It’s showing continued signs of softening, which aligns with my sell setup for USD/JPY. - Broader risk sentiment in equity markets is also mixed, with the S&P 500 holding up but without strong upward momentum, which supports the yen’s safe-haven appeal in my analysis. Key Companies and Influencing Factors: - The performance of U.S. equities, particularly tech and consumer sectors, signals cautious optimism, but not enough to offset the dollar’s broader weakness. - On the Japanese side, the SMI reflects stable conditions, giving me confidence that external forces (e.g., global risk sentiment) will favour this trade direction. Possible Market Impacts: - My sell setup aligns well with the current environment. A move toward **TP1 (149.057)** is likely if equities fail to gain strong traction and the DXY continues to weaken. - A push toward **TP2 (148.534)** could occur if risk-off sentiment strengthens globally, amplifying demand for the yen. - My stop loss at **150.796** is in place to manage risk in case of unexpected dollar rebounds or lack of yen strengthening. Entry, SL, and TPs: - Entry: 150.345 - Stop Loss (SL): 150.796 - Take Profit 1 (TP1): 149.057 - Take Profit 2 (TP2): 148.534 *“When the Market’s Call, We Stand Tall. Bull or Bear, Just Ride the Wave!”* **Disclaimer:** *Disclaimer: This analysis is for informational purposes only and does not constitute financial advice. Traders should conduct their own due diligence before making investment decisions.*
Short
by SiriusTrading
USD/CHF: Indices and Market Factors Driving SentimentIndex and Volume Analysis: - The DXY continues to reflect a softer dollar amid weaker labor market data, which has weighed on OANDA:USDCHF upward momentum. - Equity markets remain mixed, with the SP:SPX and Nasdaq posting slight gains, suggesting a cautious risk-on sentiment. Key Companies and Influencing Factors: - U.S. Equities:** Positive sentiment in U.S. equities, driven by tech and consumer sectors, could limit CHF’s safe-haven appeal. - Swiss Market Index (SMI): The SMI remains steady, reflecting Switzerland’s broader economic resilience but offering no major CHF-driving factors. Possible Market Impacts: - If the risk-on sentiment continues in equities, USD/CHF could find support and move toward the TP of **0.90043**. - Conversely, any shifts toward risk-off sentiment or additional dollar weakness could push the pair closer to your SL of **0.87998**. Entry, SL, and TP: - **Entry:** 0.88358 - **Stop Loss (SL):** 0.87998 - **Take Profit (TP):** 0.90043 When the Market’s Call, We Stand Tall. Bull or Bear, Just Ride the Wave! Reminder: *Disclaimer: This analysis is for informational purposes only and does not constitute financial advice. Traders should conduct their own due diligence before making investment decisions.*
Long
by SiriusTrading
What Countries Use the US Dollar?What Countries Use the US Dollar? The US dollar is more than just the currency of the United States; it's a global powerhouse used by countries worldwide. Whether as legal tender or alongside local currencies, the US dollar plays a significant role in international trade and finance. In this article, we’ll explore what countries use American dollars, where it circulates alongside local money, and why its influence extends far beyond US borders. Overview of the US Dollar as a Global Currency The US dollar (USD) has held a dominant position in global finance since the mid-20th century. After World War II, the Bretton Woods Agreement established the USD as the backbone of the international monetary system, linking it to gold and making it the preferred currency for trade and investment. Even though the gold standard was abandoned in the 1970s, the US dollar remained crucial for international transactions. Today, the USD is the world's primary reserve currency, held by central banks across the globe to stabilise economies and facilitate trade. As of Q2 2024, nearly 60% of all global foreign exchange reserves are in dollars, and it accounts for 88% of forex trades (as of April 2022). The USD is used in pricing major commodities like oil, gold, and metals, further solidifying its role in global markets. Want to observe how prices of these commodities have changed over the years? Head over to FXOpen’s free TickTrader trading platform to get started with real-time charts. Countries often hold USD as a hedge against their own currencies' volatility or to back their financial systems. Whether through official dollarisation or pegs, many economies depend on the USD for economic stability and international trade. What Countries Use the US Dollar? Several countries around the world have adopted the US dollar as their official currency, a practice known as dollarisation. This usually happens when a nation decides that using the USD will provide greater economic stability than their local currency, particularly in countries that have struggled with high inflation or political instability. So how many countries have dollar currency? - Ecuador: After a severe economic downturn, Ecuador adopted the US dollar in 2000. By using the USD, Ecuador stabilised its economy, controlled inflation, and regained investor confidence. - El Salvador: El Salvador is a country where the US dollar is the legal currency. In 2001, it switched to the USD to increase economic stability and promote foreign investment. This move has helped the country maintain inflation at lower levels. - Zimbabwe: After facing hyperinflation in the late 2000s, Zimbabwe abandoned its currency in 2009 and began using several foreign currencies, including the USD. However, the country has struggled with stability and frequently shifts between foreign currencies and local ones. - Timor-Leste: Since 2000, Timor-Leste has used the USD to help stabilise its economy, which was heavily reliant on foreign aid and oil exports. - British Virgin Islands: An overseas British territory, the British Virgin Islands, uses USD as its official currency due to its strong trade links with the US and its role as a financial hub. - Turks and Caicos Islands: Another British overseas territory in the Caribbean, Turks and Caicos also uses the USD, mainly because of its heavy reliance on tourism from the United States. - Micronesia, Palau, and the Marshall Islands: These Pacific island nations have long-standing agreements with the US, adopting the US dollar as part of their Compacts of Free Association, which provide economic aid and defence in exchange for using the USD. - Bonaire, Sint Eustatius, and Saba: Collectively referred to as the Caribbean Netherlands, they officially adopted the United States dollar (USD) as their currency on January 1, 2011, following the dissolution of the Netherlands Antilles in 2010. The switch to the USD was aimed at enhancing economic stability and simplifying transactions with the United States, a key trade partner and significant source of tourism for the region. Countries and Territories Where the US Dollar Is Used Alongside Local Currencies In many countries and territories, the US dollar is used alongside local currencies, often for international trade, tourism, or to hedge against inflation. While not officially replacing local money, the US dollar plays a vital role in these economies. Here’s a closer look at other countries that use the US dollar alongside local currencies: - Panama: Since 1904, Panama has used the US dollar alongside its local currency, the balboa. The country chose the USD due to its strong trading ties with the United States, especially with the Panama Canal's importance to global trade. - Cambodia: The riel is Cambodia’s official currency, but the US dollar is widely accepted and often preferred for larger transactions. It’s estimated that over 80% of the country’s deposits and loans are in USD, reflecting its dominance in the economy, particularly in urban areas. - Bahamas: The Bahamian dollar is pegged 1:1 to USD, and both are used interchangeably throughout the islands, especially in tourism-driven sectors. Many businesses and ATMs accept both currencies without issue. - Bermuda: The Bermudian dollar is also pegged 1:1 to the US dollar, and both are widely accepted. The USD is frequently used in international trade and by tourists visiting the island. - Belize: In Belize, the Belizean dollar is officially used, but the US dollar is accepted nearly everywhere. The local currency is pegged to the USD at a fixed rate of 2:1, and many businesses, especially those catering to tourists, price goods and services in US dollars. - Liberia: This country uses the US dollar as its paper currency alongside the Liberian dollar. The USD is often preferred for larger transactions and savings, particularly in urban areas. It has been a significant part of the country’s financial system due to its historical ties with the United States. - Myanmar (Burma): The Myanmar kyat is the official currency, but the USD is widely used, particularly in tourism, international trade, and foreign investment. Many hotels, airlines, and larger businesses will accept USD for transactions. - Lebanon: The Lebanese pound is the official currency, but the US dollar is extensively used, especially given the recent economic crisis and hyperinflation. Many sectors of the economy rely on the USD to preserve value and enable trade. - Argentina: Although the Argentine peso is the national currency, the US dollar is commonly used for savings and major purchases, such as property. High inflation and currency controls have driven many Argentinians to hold USD to protect their wealth. - Peru: While the Peruvian sol is the official currency, the USD is often used for real estate, tourism, and larger transactions. Many Peruvians prefer to keep their savings in USD to avoid potential depreciation. - Haiti: The Haitian gourde is the official currency, but the US dollar is widely accepted, particularly in the capital, Port-au-Prince. Many businesses and services cater to both the local population and tourists, pricing in both gourdes and USD. - Vietnam: While the Vietnamese dong is the official currency, the US dollar is commonly used for larger transactions, particularly in the tourism and real estate sectors. Some high-end hotels and international businesses price goods and services in USD. How Does the US Dollar Affect Economies That Don’t Use It Directly? Even countries that don’t use the US dollar directly feel its impact. Many nations peg their local currency to the USD, such as Hong Kong and Saudi Arabia. These currency pegs mean that when the value of the US dollar shifts, so does the value of their currency, affecting everything from inflation to trade competitiveness. A stronger USD can make these countries' exports more expensive and reduce demand, while a weaker dollar has the opposite effect. Additionally, a large portion of global debt, particularly in emerging markets, is issued in US dollars. If the dollar strengthens, these countries face higher costs when repaying loans, which can strain government budgets and hurt economic growth. Fluctuations in the USD also influence commodity prices, as goods like oil and gold are priced in dollars. When it rises, commodity prices often fall, impacting countries that rely on exports of these resources. Challenges of Using the US Dollar Countries that use USD, whether adopted or pegged to it, face significant challenges. The most pressing issue is the loss of monetary control. When a country uses the US dollar, it can no longer set its own interest rates or control its money supply, leaving it vulnerable to the decisions of the US Federal Reserve. For example, if the Fed raises interest rates, borrowing costs increase globally, even for economies that might not take advantage of tighter monetary policy. Countries also lose the ability to devalue their currency to make exports more competitive, which can hinder economic growth. This lack of flexibility can be problematic during local economic downturns, as governments have fewer tools to stimulate their economy or combat inflation. Additionally, dependence on the US dollar exposes economies to external shocks. A sharp appreciation in USD can hurt countries with significant USD-denominated debt, making it more expensive to service loans. While the US dollar provides stability, these countries sacrifice a degree of autonomy over their economic policies. The Bottom Line The US dollar’s global reach impacts economies worldwide, whether as legal tender or widely circulated paper currency. Understanding its role can help traders navigate international markets. If you're ready to take advantage of currency movements, consider opening an FXOpen account. With FXOpen, you'll gain access to the tools and platforms to trade major currencies, including the USD, and take advantage of our low-cost, high-speed trading environment. FAQ What Country Uses the US Dollar as Its Paper Currency? Several countries use the US dollar as paper currency alongside their local money. Cambodia, Argentina, and Lebanon, for example, commonly accept USD for larger transactions despite having their own official currencies. Does El Salvador Use USD? Yes, El Salvador officially adopted the US dollar in 2001. The decision was made to stabilise the economy and reduce inflation, offering more stability in the financial system. Today, the USD is used for all transactions, making it the primary currency in the country. Does Panama Use USD? Yes, Panama has used the US dollar since 1904 alongside its local currency, the balboa. The USD is used for most transactions, and the balboa is pegged 1:1 with the dollar, meaning both currencies are interchangeable within the country. Does Ecuador Use the US Dollar? Ecuador has used the US dollar since 2000, after a severe financial crisis. The switch helped stabilise the economy, reduce hyperinflation, and restore public confidence in the financial system. Today, the USD is the sole official currency. Does Puerto Rico Use the US Dollar? Yes, as an unincorporated territory of the United States, Puerto Rico uses the US dollar as its official currency. The USD is used for all financial transactions, just like in any US state. Where Does the US Dollar Have the Most Value? The US dollar tends to have more purchasing power in countries with weaker local currencies. Examples include countries like Mexico, Vietnam, and Indonesia, where the USD can buy significantly more goods and services compared to stronger economies. 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.
FXOPEN:DXYEducation
by FXOpen
1
Bearish drop off overlap reisstance?The US Dollar Index (DXY) has reacted off the pivot which has been identified as an overlap resistance and could drop to the 1st support which acts as a pullback support. Pivot: 106.58 1st Support: 105.44 1st Resistance: 107.05 Risk Warning: Trading Forex and CFDs carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Forex and CFDs may not be suitable for all investors, so please ensure that you fully understand the risks involved and seek independent advice if necessary. Disclaimer: The above opinions given constitute general market commentary, and do not constitute the opinion or advice of IC Markets or any form of personal or investment advice. Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, are intended only to be informative, is not an advice nor a recommendation, nor research, or a record of our trading prices, or an offer of, or solicitation for a transaction in any financial instrument and thus should not be treated as such. The information provided does not involve any specific investment objectives, financial situation and needs of any specific person who may receive it. Please be aware, that past performance is not a reliable indicator of future performance and/or results. Past Performance or Forward-looking scenarios based upon the reasonable beliefs of the third-party provider are not a guarantee of future performance. Actual results may differ materially from those anticipated in forward-looking or past performance statements. IC Markets makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or any information supplied by any third-party.
TVC:DXYShort
by ICmarkets
3
GOLD TOW SENARIO1. Spot Price Around $2630: Gold is fluctuating near the $2630 support zone. This level is critical as it could determine the direction of the next move. 2. Scenario if $2630 Breaks: If the price breaks decisively below $2630 with strong volume, it could extend the bearish trend towards $2600 or even lower. The next support levels to watch are $2600 and $2580. 3. Scenario if $2630 Holds: If gold fails to break below $2630 and rebounds, it could move upward towards its immediate resistances at $2650, $2663, and potentially $2670. A break above $2670 could trigger a bullish rally targeting $2700. OANDA:XAUUSD
OANDA:XAUUSD
by TRADE_CENTER_1
"EUR/USD: Rebound Before Deeper Decline"The EUR/USD currency pair finds itself in a delicate phase of local correction, driven primarily by the temporary softening of the US dollar. This correction comes amidst a backdrop of complex global dynamics and heightened market sensitivity to news-driven events. The currency pair appears poised to retest local highs in the short term, yet traders should approach this opportunity with a heightened sense of vigilance. Today’s economic calendar is packed with high-impact events, and the fundamental backdrop remains skewed heavily toward negativity for the euro. These factors could amplify volatility and result in sharp, unpredictable price movements. ### **Macro and Fundamental Overview** From a macroeconomic perspective, the euro faces a host of challenges that continue to undermine its strength. Persistent global headwinds, such as the lingering effects of Trump-era policies, including tariffs targeting European exports, have placed sustained pressure on the region’s trade dynamics. Meanwhile, Europe’s monetary policy stance remains dovish, with the European Central Bank leaning toward maintaining or even reducing already historically low interest rates. Such a backdrop has solidified the downtrend in EUR/USD, both on a broader and local scale. The US dollar, despite its temporary pullback, remains supported by its role as a safe haven in times of uncertainty. Factors such as a resilient US labor market, better-than-expected GDP figures, and the Fed’s measured approach to monetary policy keep the dollar attractive relative to the euro. The interplay of these forces suggests that the euro’s upward momentum during corrections is likely to remain limited and short-lived. ### **Technical Analysis: False Breakouts and Resistance Retests** On the technical front, the EUR/USD pair is exhibiting signs of a potential false breakout below key support levels. Such patterns often serve as a precursor to temporary price recoveries, as market participants test resistance levels before resuming the dominant trend. In this context, the price action suggests that a retest of nearby resistance levels, coupled with bearish reversal patterns, could pave the way for renewed selling opportunities. The most immediate resistance levels to monitor are 1.0606, 1.0650, and 1.0760. These zones are likely to attract selling pressure, especially if bearish sentiment is reinforced by today’s news events. Conversely, support levels at 1.0517, 1.0440, and 1.0330 remain critical. A decisive break below these levels could accelerate the pair’s descent, signaling the continuation of the broader downtrend. ### **News Sensitivity and Bearish Triggers** Given the heavily saturated news cycle, traders should remain particularly attentive to market reactions to economic releases and geopolitical developments. Key announcements, such as US labor market data, European inflation figures, or updates on trade negotiations, could act as catalysts for sharp price swings. If bearish triggers dominate, such as unexpectedly hawkish commentary from the Fed or further downgrades to Europe’s growth outlook, the pair is likely to face renewed selling pressure, particularly at resistance zones. ### **Trading Strategy and Outlook** In this environment, a prudent trading approach involves waiting for confirmation of bearish reversal signals at resistance levels before considering short positions. Patience is key, as the market may temporarily attempt to test or even breach resistance before resuming its downward trajectory. Traders should also consider using tight stop-loss levels to mitigate risk, given the potential for heightened volatility. To summarize, while the local correction in EUR/USD presents a short-term opportunity to test resistance levels, the overarching bearish narrative remains intact. The interplay of weak euro fundamentals, dovish monetary policy, and a generally strong US dollar points to further downside potential. Monitoring key technical levels, understanding news-driven volatility, and adopting a disciplined approach to risk management will be crucial for navigating the next phase of this downtrend.
Short
by lonelyPlayer0
1
A Brief 57-Year History of the DollarThe year 1971, when the Bretton Woods system ended, marked a period where the dollar's value followed a volatile trajectory of ups and downs—until 2008. The global financial crisis was another turning point, and since then, the dollar has been steadily appreciating. This trend is expected to continue, at least until another significant pivot point emerges. Will such a critical turning point occur during Trump’s second term? That remains to be seen. However, one thing is clear: the dollar seems poised to keep gaining value.
INDEX:DXYLong
by The_Quantastic
1