DXY trade ideas
Dollar Index Eyes FVG Breakout Ahead of CPIDXY 11/06 – Dollar Index Eyes FVG Breakout Ahead of CPI | Reversal Risk After 100.31?
The US Dollar Index (DXY) continues to consolidate within a rising channel on the H2 timeframe, with price tightening just ahead of a key macro event — the US CPI report. DXY is now approaching a critical Fair Value Gap (FVG) zone, where liquidity hunts and potential reversals become highly probable.
🌐 MACRO OUTLOOK & MARKET SENTIMENT
📌 US CPI (June 12):
The main macro driver for DXY this week.
A hotter-than-expected print → strengthens the Fed’s hawkish stance → DXY likely to spike.
A weaker-than-expected CPI → boosts rate cut expectations → downside pressure on DXY.
📌 Risk Sentiment:
Institutions are readjusting their exposure ahead of CPI and FOMC. This has caused DXY to hover near EMA89 — a sign of indecision.
📌 Cross-asset Flows (Bonds & Gold):
Treasury yields are stable, but surprises in CPI could lead to capital rotation between gold and USD, increasing volatility in XAUUSD and DXY simultaneously.
📈 TECHNICAL ANALYSIS
Trend Structure:
DXY is following a clean ascending channel on H2, with higher lows respecting the lower trendline.
EMA Confluence (13–34–89–200)
Price is consolidating near EMA89 and below EMA200 (99.40), forming a neutral short-term bias.
A clean breakout above EMA200 could trigger acceleration into the FVG zone.
Key FVG Zone (H2):
99.63 – 100.31 is an unfilled Fair Value Gap.
This zone may act as a magnet for price before any meaningful rejection or breakout.
Potential Reversal Area:
A rejection at 100.31 could trigger a sharp pullback toward the liquidity zone around 98.68.
🧠 STRATEGIC OUTLOOK
CPI will set the tone for DXY’s mid-term trend.
Watch the 99.63 – 100.31 FVG zone for liquidity sweeps and potential rejection.
Wait for confirmation, not prediction — especially in macro-sensitive environments.
U.S. Dollar Index (DXY) Weekly 2025Summary:
The U.S. Dollar Index (DXY) has corrected down to the key 38.60% Fibonacci retracement zone and is currently showing signs of a potential bullish reversal, bolstered by a clear hidden bullish divergence on the MACD. This may signal a renewed rally toward key upside targets, especially if the 93.3–99.9 support Zone holds.
Chart Context:
Current Price: 98.864
Key Fib Support: 38.60% @ 99.906, 48.60% @ 93.310, 61.80% @ 87.476
Support Zone: 93.3–99.9 USD
Hidden Bullish Divergence: Observed both in 2021 and now again in 2025 on the MACD
Trendline Support: Long-term ascending trendline holding since 2011
Fib Extension Targets (Trend-Based):
TP1: 115.000
TP2: 120.000
TP3: 126.666
Key Technical Observations:
Fibonacci Confluence: DXY is bouncing from a strong Fib cluster between 93.310 and 99.906, historically acting as a reversal zone.
Hidden Bullish Divergence: Suggests potential upside despite price weakness.
Downtrend Retest: Price may revisit 93.3–87.4 before confirming full reversal.
Breakout Pathway: Green dashed arrows outline the likely recovery trajectory toward 114–126 range.
Indicators:
MACD: Showing hidden bullish divergence and potential signal crossover.
Trendline Support: Holding intact from 2021 low.
Fib Levels: Used for retracement and trend-based extension.
Fundamental Context:
Interest Rate Outlook: If U.S. inflation remains controlled and Fed signals future hikes or sustained high rates, DXY strength may persist.
Global Liquidity & Recession Risk: If risk aversion returns, the dollar may rise as a safe haven.
Geopolitical Risks: Conflicts, trade tensions, or BRICS dedollarization efforts may create volatility.
Our Recent research suggests the Fed may maintain higher-for-longer rates due to resilient labor markets and sticky core inflation. This supports bullish USD bias unless macro shifts rapidly.
Why DXY Could Continue Strengthening:
Robust U.S. economic performance & monetary policy divergence
U.S. GDP growth (~2.7% in 2024) outpaces developed peers (~1.7%), supporting stronger USD
The Fed maintains restrictive rates (4.25–4.50%), while the ECB pivots to easing, widening the policy and yield gap .
Inflation resilience and Fed hawkishness
Labor markets remain tight, keeping inflation “sticky” and delaying expected rate cuts; market-implied cuts for 2025 have been pushed into 2026
Fed officials (e.g. Kugler) emphasize ongoing tariff-driven inflation, suggesting rates will stay elevated.
Safe-haven and yield-seeking capital flows
With global risks, capital favors USD-denominated assets for yield and stability
Why the Dollar Might Face Headwinds
Fiscal expansion & trade uncertainty
Ballooning U.S. deficits (~$3.3 trn new debt) and erratic tariff policy undermine confidence in USD
Wall Street’s consensus bearish position.
Major banks largely expect a weaker dollar through 2025–26. However, this crowded bearish sentiment poses a risk of a sharp rebound if data surprises occur
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Tariff policy risks
Trump's new tariffs could dampen dollar demand—yet if perceived as fiscal stimulus, they could unexpectedly buoy the USD .
Synthesis for Our Biases
A bullish DXY thesis is well-supported by:
Economic and policy divergence (U.S. growth + Fed vs. peers).
Hawkish Fed commentary and sticky inflation.
Safe-haven capital inflows.
Conversely, risks include:
Deteriorating fiscal/trade dynamics.
Potential Fed pivot once inflation shows clear decline.
A consensus that could trigger a short squeeze or reversal if overstretched.
Philosophical / Narrative View:
The dollar remains the world’s dominant reserve currency. Periodic dips often act as strategic re-accumulation phases for institutional capital—especially during global macro uncertainty. A return toward 120+ reflects this persistent demand for USD liquidity and safety.
Bias & Strategy Implication:
1. Primary Bias: Bullish, contingent on support at 93.3–99.9 holding.
2. Risk Scenario: Breakdown below 93.3 invalidates bullish thesis and targets 87.4–80 zones.
Impact on Crypto & Gold and its Correlation and Scenarios:
Historically, DXY has had an inverse correlation to both gold and crypto markets. When DXY strengthens, liquidity tends to rotate into dollar-denominated assets and away from risk-on trades like crypto and gold. When DXY weakens, it typically acts as a tailwind for both Bitcoin and gold.
Correlation Coefficients:
DXY vs. Gold: ≈ -0.85 (strong inverse correlation)
DXY vs. TOTAL (crypto market cap): ≈ -0.72 (moderate to strong inverse correlation)
Scenario 1: DXY Rallies toward 115–126 then, Expect gold to correct or stagnate, especially if yields rise. Crypto likely to pull back or remain suppressed unless specific bullish catalysts emerge (e.g., ETF flows or tech adoption).
Scenario 2: DXY ranges between 93–105 then Gold may consolidate or form bullish continuation patterns. Then Crypto may see selective strength, particularly altcoins, if BTC.D declines.
Scenario 3: DXY falls below 93 and toward 87 Then Gold likely to rally, possibly challenging all-time highs. Crypto could enter a major bull run, led by Bitcoin and followed by altcoins, fueled by increased liquidity and lower opportunity cost of holding non-USD assets.
Understanding DXY’s direction provides valuable insight for portfolio positioning in macro-sensitive assets.
Notes & Disclaimers:
This analysis reflects a technical interpretation of the DXY index and is not financial advice. Market conditions may change based on unexpected macroeconomic events, Fed policy, or geopolitical developments.
DOLLARThe relationship between the US dollar (USD), the 10-year Treasury bond yield, and bond prices is tightly interconnected and crucial for global markets.
1. 10-Year Bond Yield and Bond Price
Inverse Relationship:
As the yield on the 10-year Treasury rises, the price of the bond falls, and vice versa. This is because the bond’s coupon payment is fixed; when new bonds are issued with higher yields, existing bonds with lower coupons become less attractive, so their prices drop to compensate.
Recent Movement:
In May and early June 2025, the US 10-year Treasury yield rose from 4.18% to around 4.50%, a move of over 30 basis points, driven by strong economic data and expectations that the Federal Reserve will keep rates higher for longer.
2. 10-Year Bond Yield and the Dollar (DXY)
Direct Relationship:
Generally, when the 10-year Treasury yield rises, the US dollar strengthens. Higher yields attract foreign investment into US assets, increasing demand for USD.
Recent Example:
After the stronger-than-expected May jobs report, the 10-year yield jumped to 4.50% from 4.3% on thursday and the dollar index (DXY) also rose, reflecting investor expectations of prolonged high US rates and robust economic performance.
3. Bond Price and the Dollar
When bond prices fall (and yields rise), it often signals expectations for higher interest rates or inflation, both of which tend to support a stronger dollar as investors seek higher returns in USD assets.
Conversely, when bond prices rise (and yields fall), it can indicate economic uncertainty or expectations of rate cuts, which may weaken the dollar.
Key Takeaway
Rising 10-year Treasury yields lead to falling bond prices and typically a stronger US dollar, as higher yields attract global capital seeking better returns.
This dynamic is especially pronounced when strong US economic data or hawkish Fed expectations are in play, as seen in the recent market reaction to the robust US jobs report.
#dxy#dollar #gold
DXY DownHaven't posted here in quite awhile, however just have been following trends watching bonds, stocks and bitcoin/gold. Looking at the DXY it appears to have fallen below the 100-101 level support and has since been rejected by that region on a weekly time frame. The support/resistance levels and trends line within have been charted for years and left unchanged. RSI is in the oversold territory but that can remain low for quite a long time, especially if the trend changes. I think the DXY goes to 90 over the next 6 months to 1 year.
Bullish for stocks, bitcoin, gold etc. Who is the fastest horse?
DXY: Target Is Up! Long!
My dear friends,
Today we will analyse DXY together☺️
The market is at an inflection zone and price has now reached an area around 98.471 where previous reversals or breakouts have occurred.And a price reaction that we are seeing on multiple timeframes here could signal the next move up so we can enter on confirmation, and target the next key level of 98.594.Stop-loss is recommended beyond the inflection zone.
❤️Sending you lots of Love and Hugs❤️
Is the dollar's a trend or temporary?📊Technical Analysis for:
🕒 Timeframe:
📈 General Trend:
🔍 Analysis Summary:
We are currently observing a rebound from the 98.400 level.
• Major Support Level:
• Resistance Level:
• Technical Indicators: We note that this correction is due to divergence.
🎯 Suggested Entry and Exit Points:
✅ Entry: Upon a breakout/rebound from
⛔ Stop Loss:
🎯 Targets:
• First Target:
• Second Target:
📌 Recommendation:
– It is recommended to wait for confirmation of the technical signal before making a decision.
🛑 Disclaimer:
This analysis is not considered financial advice or a direct buy or sell recommendation. Do your own research and carefully consider risk management before making any decisions.
📥 Do you agree with this analysis? Share your opinion in the comments!
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Monday Market Outlook Get ahead of the markets with this week’s essential macro insights! In this session, we break down the most impactful upcoming events affecting DXY, XAUUSD, and BTCUSD — including the FedWatch Tool outlook, yield curve shifts, and how to interpret changing rate expectations. If you want to understand how the macro backdrop could influence your trades, this video is a must-watch.
👉 Learn how to spot opportunities before the move happens.
📉 Rate cut? 📈 Rate hike? 📊 We’ll show you what the market is really pricing in.
Skeptic | This Week's Most Profitable Setups: Gold, Forex & SPX!hey, traders, it’s Skeptic ! 😎 Our last watchlist was straight fire, racking up some sweet profits with tons of setups. This week’s looking just as juicy, so stick with me to catch these killer opportunities! 🚖 Welcome to my Weekly Watchlist, where I lay out the markets I’m trading with active triggers—forex pairs, commodities, and CFD indices. No FOMO, no hype, just pure reasoning to keep your trades sharp. Let’s jump in! 📊
DXY (Dollar Index)
Let’s kick off with DXY, ‘cause getting this right makes analyzing other indices and pairs a breeze. After multiple failed attempts to break support at 98.8 , it’s still ranging. This is a monthly support, so confirmation of a break needs to come on a monthly or at least weekly chart. Personally, I’m betting it’ll bounce from here. A break above 99.36 gives early confirmation of a rise, but the real deal is breaking resistance at 100 —then you can short USD pairs like EUR/USD . If 98.8 gives way, look for longs, but this monthly zone is tough, so expect some chop! 😬
EURX
EURX seems to be in a weak upward channel. A break above 1063 could push us to 1071 . On the flip side, breaking the channel’s midline at 1058 might drag us to the floor or even support at 1049 . So, our EURX game plan is clear.
Watchlist Breakdown
Let’s hit the watchlist, starting with XAU/USD (Gold ).
Triggers here are tricky, but I cloned last week’s downward channel and placed it above—this trick often gives us solid setups. If we bounce off the channel’s floor, a break above resistance at 3340 opens a long. For shorts, I don’t have a trigger yet since the market’s already dumped. If we form a 1-hour range, a break below its floor could trigger a short targeting 3249 or the previous channel’s midline.
Now, XAG/USD (Silver)
—no triggers this week. Our long trigger from last week’s analysis at 33.68 smashed it, spiking 8%! 🎉 That’s a lock even Bitcoin traders would drool over, but in Skeptic Lab :)
Next, EUR/USD.
The long trigger is set at a break above resistance at 1.14555 , which lines up with the DXY support break I mentioned. Heads-up: this trade won’t be easy. Reduce risk ‘cause we’re in for a big fight at this level—wild swings and tight stop losses get hunted fast. Stay sharp! 😤
GBP/USD Update
My GBP/USD long got stopped out, so let’s break it down. I went long after a resistance break, with crazy uptrend momentum and RSI hitting overbought (which I see as a long confirmation). Everything looked dope except my stop loss placement. The prior move was so sharp that my stop had to be wide, tanking my R/R. It hit the box ceiling target but then dumped, nailing my stop. Lesson? Either jump in before the main momentum or let the move play out and skip it. Mid-move entries with big stops? Recipe for pain...
SPX 500
Our SPX 500 long trigger from breaking the box ceiling already fired and seems to have pulled back. My target’s 6128.55 , and my open position has a stop loss below 5952.51. If you missed last week’s trade, a new trigger could be a 1-hour resistance break at 6014.20 . If you’re already long, no need to double up.
Final Note
my max risk per trade is 1%, and I suggest you stick to that or lower. I’m cooking up a Money management guide soon, diving deep into why it’s the key to outpacing 90% of traders and boosting your odds of consistent profits. Stay tuned! 🚨 No FOMO, and have an awesome week!
💬 Let’s Talk!
If this watchlist lit a spark, hit that boost—it means a ton! 😊 Got a pair or setup you want me to tackle? Drop it in the comments. Thanks for rolling with me—keep trading smart! ✌️
DXY Weekly ForecastDXY Weekly Forecast
A Message To Traders:
I’ll be sharing high-quality trade setups for a period time. No bullshit, no fluff, no complicated nonsense — just real, actionable forecast the algorithm is executing. If you’re struggling with trading and desperate for better results, follow my posts closely.
Check out my previously posted setups and forecasts — you’ll be amazed by the high accuracy of the results.
"I Found the Code. I Trust the Algo. Believe Me, That’s It."
Falling expected of $$ Index.📉 DXY Analysis – June 22, 2025
The U.S. Dollar Index (DXY) is showing clear signs of rejection from the Daily Time Frame Swing Supply Zone around 99.000. A confirmed Head & Shoulders pattern on the H1 chart suggests a short-term bearish reversal. Price action remains under the 100 EMA on the 4H, and the market continues to respect the descending trendline.
Technical Outlook:
🔻 Target 1: 98.000
🔻 Target 2: 94.650 (Major support zone)
📈 RSI divergence confirms downside pressure.
🧭 Fundamental View:
Fed Pivot on the Horizon: Softer inflation and weakening U.S. macro data (e.g. unemployment ticking up, sluggish GDP) increase the probability of a rate cut by Q3 2025.
Risk-On Sentiment Returning: Global risk appetite is improving, pulling capital away from safe-haven USD assets.
Geopolitical Tensions (US–Iran–Israel): Ongoing Middle East conflict is driving temporary spikes in DXY due to safe-haven demand, but if escalation slows or a ceasefire is reached, this could accelerate downside moves in the dollar.
Oil Impact: Rising oil prices due to conflict could hurt the U.S. economy further, worsening the Fed’s policy dilemma and adding pressure on the dollar.
Bias: Bearish
❌ Invalidation above 99.200
🔎 Events to Watch: Fed speeches, PCE inflation, geopolitical developments in the Middle East
#DXY #Forex #USD #Geopolitics #USIranIsrael #HeadAndShoulders #Fed #MacroAnalysis #Tradewithnajamahmed #TechnicalAnalysis #DollarIndex
The DXY eince 1979 and Rate Rises / Cuts & the Crucial point NOW
What i want to draw your attention now, more than anything is simplay that DXY PA is on the line of Support created in the 2008 Crash
Thisis Crucial as if it drops belwo, that is the $ on the international stage loosing the strongest line of support it has ever had
If we look at the stage now, you will also see that the DXY was loosing traction BEFORE the FED began cutting Rates.
This is due to many things on the internationa stage, Like BRICS gaining momentum.
If we look closer, at the weekly chart since around 2017
We can see how the DXY has been Ranging, with a Few Peaks and Drops, the deepest being in 2021, just before the Bitcoin ATH that year.
It bounced well and hit a Peak in late 2022, when Bitcoin was in its Deep Bear.
DXY has ranged ever since j a tight range...
Untill this year
And now, we find DXY on that line of support once moew, Bitcoin maybe heading to a New ATH
But this time we have the serious threat of Global Mayhem
So, the thing to watch here, Like a HAWK, is if DXY can hold this line of support.
Can the $ regain international support and bounce OR will it Fall through this line of support ?
Or Range on it as in 2021
I am not going to pretend to know the answer but I certainly recommend we all pay attention to this- This could take a while................
DXY Bearish Reversal in Play: Eyeing 97.596 Target After ResistaPotential Head and Shoulders or Double Top Formation:
The blue curved line and the shaded “SUPPORT” zone at the top suggest a reversal pattern.
The large blue arrow indicates a bearish projection after failing to break the resistance zone (~99.200).
📊 Key Indicators:
EMAs (Exponential Moving Averages):
50 EMA (Red): 98.727
200 EMA (Blue): 98.659
Price is currently above both EMAs, which typically signals bullish momentum in the short term, but the drawn pattern suggests a pending reversal.
RSI (Relative Strength Index):
Current values: ~53.43 (RSI), ~47.67 (Signal line)
RSI is near the midpoint (50), indicating no strong momentum in either direction yet, but possibly setting up for a decline if it moves below 50.
🟪 Resistance Zone:
Highlighted in purple: ~99.100–99.250.
The price has tested this area and failed to break it, indicating strong selling pressure.
🔻 Bearish Outlook:
The large blue arrow suggests a drop toward the "CONFIRM TARGET POINT" at 97.596.
Breakdown below the black horizontal support line would confirm the bearish move.
📉 Conclusion:
This chart analysis suggests a bearish reversal is likely, supported by:
A resistance rejection at ~99.2
Formation of a reversal pattern
EMA convergence (potential crossover if trend continues)
Neutral RSI with a potential bearish divergence
⚠️ Watch For:
Confirmation with a break below 98.400 and especially the support line at ~97.596.
RSI dropping below 50.
EMA crossover (50 EMA crossing below 200 EMA) would strengthen the bearish case.
DXY Weekly ForecastDXY Weekly Forecast
- DXY expect to be strong due to fundamental factors
- bigger structure needed before DXY to come down to 96.000 level
- look for up move this week
A Message To Traders:
I’ll be sharing high-quality trade setups for a period time. No bullshit, no fluff, no complicated nonsense — just real, actionable forecast the algorithm is executing. If you’re struggling with trading and desperate for better results, follow my posts closely.
Check out my previously posted setups and forecasts — you’ll be amazed by the high accuracy of the results.
"I Found the Code. I Trust the Algo. Believe Me, That’s It."
Potential Bullish Scenario for DXY, target objective is 99.392Higher timeframe analysis
As discussed in last week's analysis of the DXY, the higher timeframe draw on liquidity is the bearish monthly Fair value gap set at 101.977. This warrants a higher timeframe bullish bias until this level has been achieved.
Intermediate timeframe analysis
We note the relative equal highs on the daily and 1H chart at 99.392. This serves as a intermediate timeframe draw on liquidity and target objective.
Also note that the buyside of the curve of the market maker buy model has commenced which further fuels bullish sentiment.
Scenario 1
On the 1H chart, note the relative equal lows at 98.482. These lows are expected to be ran to serve as a liquidity primer for the bullish 1H order block at 98.436 which is expected to be respected and held. This poses a rather handsome risk to reward ratio.
Scenario 2
Should price push past the invalidation point of the bullish 1H order block we could see it head to the bullish 1H order block at the initial accumulation at 98.219. The reward on this setup would make up for the loss of scenario 1.
Disclaimer
The above analysis is intended for educational purposes only and should not be interpreted as financial advice.