Dollar In Fifth Wave-Reversal In Trend May Not Be Far Away.The Fed will announce its latest policy decision later, and expectations are that Powell will keep rates on hold, especially after last week's slightly higher inflation print and still solid US jobs data. We can see some stabilization in the US dollar ahead of this event, but we have to keep an eye on geopolitical tensions in the Middle East, which coudl also play a key role in driving safe haven flows.
Meanwhile, the stock market continues to trade sideways, and I don't expect any major breakouts or strong moves ahead of the Fed. Also, tomorrow is a holiday in the US, so that could contribute to slower market conditions into the end of the week, unless, of course, the situation in the Middle East gets worse.
Looking at the DXY waves structure, I see athree-wave move from the most recent lows, so the fourth wave I highlighted a few days ago could now be approaching completion near this week’s key resistance around the 99 level. That’s definitely a level to watch for a potential fresh, but possibly final sell-off toward new lows around 97, maybe even 96.
That’s where the DXY could stabilize, as ending diagonal pattern signals that we are likely in the late stages of wave five, meaning this bearish cycle could soon come to an end.
DOLLARINDEX trade ideas
DXY 2H Analysis – June 18, 2025Pair : dxy ,,💲
Is the bullish move fading out? 📉
Price reacting near upper trendline resistance 🔵
Potential correction or final push before deeper drop ❗
Wave count suggests i–ii–iii–iv completed; wave v setup expected 🔁
Watch the reaction in the highlighted zone 📦
Either short continuation or a bullish trap loading 🧠
📌 Strategy: Elliott Wave + Trendline Confluence
📅 Stay sharp. Events approaching 📰
📈 Trade with a plan, not hope.
🔔 Follow @Greenfireforex for more real-time setups and ideas.
What to Expect From FOMC and the Market’s Reaction to It? With tariffs and Middle East escalation in focus, central banks have somewhat fallen to the backstage recently. But today’s FOMC meeting might change that. The federal funds rate upper band is most likely to stay at 4.50% with a unanimous vote. However, today’s focus will not be on the interest rate itself but rather on the dot plot and updated economic forecasts.
Inflation continues to move closer to the 2% target, but that trend may have shifted with the latest CPI report. Although recent inflation data came in better than expected, inflation appears to be flattening above 2% and could start rising again in the near future. Last week’s CPI and Core CPI reports showed early signs of this, and the upcoming PCE and Core PCE data could confirm those signals. Why is inflation still low despite tariffs? The main reason is frontloading.
U.S. consumers and firms frontloaded many goods, especially durable good, ahead of the tariff hikes. Now, with tariffs in effect, consumption has slowed, and many firms are holding elevated inventory levels. In this environment, firms are reluctant to raise prices due to lower demand and high stockpiles. This suppressive effect is expected to gradually fade, allowing prices to rise. For that reason, the Fed is unlikely to begin rate cuts prematurely. Inflation could make a peak in the last quarter of 2025 or the first quarter of 2026 in our view. But the possible oil price spike due to Iran – Israel war could change this projection.
At the March FOMC meeting when the economic projections were last updated, some of the tariff impacts were already incorporated. Inflation and unemployment were revised higher, while GDP was revised lower. Despite this, the Fed maintained its forecast of two rate cuts for both 2025 and 2026. However, since March, newly announced tariffs have been more extensive than expected. Some board members including Jerome Powell stated that. As a result, a similar adjustment to the forecasts may occur today: higher inflation and unemployment, lower GDP. Accordingly, the dot plot could show only one rate cut for 2025 and three for 2026. Why would the Fed cut more in 2026? Because the tariff impact is expected to be a one-time shock, not a structural shift. Once the effects wear off, the Fed could ease more. But there are some risks to that. According to some new research and New York FED President Williams, not only long term inflation expectations needs to be anchored, rather the “whole curve” So during a possible inflation peak came with tariff effects, FED could not cut repeatedly and should closely watch the effects on short-term inflation expectations.
The main focus of today’s FOMC will be on the economic forecasts and the dot plot. If the new projections reflect only one cut for 2025, this would be bullish for the dollar. If the 2026 projection also shows only two cuts, that would be even more bullish. On the other hand, if the current forecast of two cuts in both 2025 and 2026 remains unchanged, the reaction could be slightly dovish for the dollar.
During the post-meeting press conference, Chair Powell is likely to focus on uncertainties related to tariffs and energy prices, especially given the rising geopolitical tensions in the Middle East. Powell may downplay the hawkish tone of the dot plot during the conference, potentially reducing the overall market impact.
With all this in mind, the dollar index could either break out of the descending wedge formation on the hourly chart or continue drifting toward the lower boundary. Holding above the 99 level could be key for short-term price action.
Dollar - Coming back into Consolidation (Short Term Bullish)Been following dollar with videos for over a month and we have been in sync from the highs highlited in the video. We hit our target last week and now looking for a short term bullish run on stops at 94.40s
Give us a follow. Support the channel. Videos are regular
Skeptic | DXY Crash Alert: Epic Bearish Triggers Unleashed!heyy, traders, what’s good? It’s Skeptic ! 😎 Let’s dive into a full-on breakdown of DXY—the Dollar Index is making waves, and I’m hyped to unpack it. The 98.801 level looks busted with a pullback in play, and I’m expecting more action. Stick with me to the end as we rip through Daily and 4-Hour timeframes to catch the vibe and nail those triggers! 🚖
Daily Timeframe: The Big Picture
So, US inflation data came in softer than expected recently, but DXY still dumped. You might be like, “Wait, shouldn’t lower inflation juice up the dollar?” Nah, here’s the deal: markets move on expectations, not just news. When something grows in the markets, it’s ‘cause traders are betting it’ll keep growing—and vice versa. For DXY, traders are sniffing out a US economic slowdown and expecting the Federal Reserve to cut rates soon, which could spark higher inflation later. That’s the double-whammy driving DXY’s drop, despite the tame inflation numbers. This is the biggest secret in markets—nobody talks about it, but it’s what I learned in econ class and see every day: markets run on expectations. 📚
Major Trend: Per Dow Theory, we’re in a bearish trend as long as we’re below 98.801 .
Game Plan: While under this level, hunt longs on USD pairs like EUR/USD. If we break above 98.801, chill and let the market reform before jumping in.
4-Hour Timeframe: Long & Short Triggers
Now, let’s get to the 4-hour chart for the real action—our long and short triggers:
Short Trigger: A break below support at 98.017 could keep the bearish vibe rolling. RSI hitting oversold would be a dope confirmation. 😤
Long Trigger: Since the major trend is bearish, longs are against the flow, so keep risk tight and take profits quick. The trigger is a break above 98.801, but the main long trigger is smashing through 99.244. So, 99.244 is your go-to for longs. 💪
Pro Tip: Shorts align with the trend, so they’re safer, but longs need extra caution—small positions, tight stops, and don’t get greedy!
Final Vibe Check
That’s the DXY lowdown, fam! Markets are tricky, but if you stick to reasoning over hype, you’ll stay ahead. No FOMO, no hype, just reason —that’s how we roll at Skeptic Lab. Wanna dive deeper into risk management or another pair? Let me know! 🙌
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If this analysis got you pumped, smash that boost—it means a ton! 😊 Got a pair or setup you want me to tackle next? Drop it in the comments. Thanks for vibing with me—keep trading sharp! ✌️
DXY bullish here, sell XXXUSD! Do miss this trade plsAs per my previous post on dxy, I'm looking for higher prices now. I dont know the news or war or tariff or rate cut that will push it up. I'm just reporting what I'm seeing on the charts, most times, it doesn't lie. Just when everyone was bullish back in Jan, 2025. I turned bearish, now I'm telling you that we go up slowly or range.
This means you have to sell EURUSD, GBPUSD etc
TP1 @ 98.9
TP2 @ 99.4
Enjoy
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DXY – U.S. Dollar Faces Downside RiskAfter a period of strength driven by its safe-haven appeal, the DXY is showing signs of weakness as doubts emerge over the true resilience of the U.S. economy. Recent data — including retail sales, industrial production, and consumer sentiment — have all fallen short of expectations, raising the likelihood that the Fed may pivot to a more dovish stance sooner than anticipated.
As a market analyst closely monitoring capital flows, I believe the dollar is gradually losing its edge. With risk appetite improving and capital rotating into the euro and other risk assets, the DXY is likely to remain under pressure in the near term.
Current outlook: Bearish bias, especially if the Fed softens its tone and weak U.S. data persists.
The market is waiting for confirmation — but the pressure is already building.
$DXYAs tensions rise in the Middle East, the dollar remains a safe haven.
We could see a temporary bullish run on the dollar as capital seeks safety.
But for me, Bitcoin was the first signal that smart money is shifting into alternative assets like Gold, Silver, and beyond.
Stay alert. The market speaks before the news does.
$DXY Dollar stays weak but is it bottommed?Have not many ANY trades based on the US Dollar. Have not been convinced in either way, yet.
TVC:DXY has been weaker lately but not by much. Well, at least compared to its previous low.
However, LONGER TERM we see it's biz as usual.
It is currently fairly oversold on the weekly chart & could be primed to change direction.
DXY: WILL WE GO LOWER.What's next from this point.
The month of June signals the start of quarter three based on the quarterly theory.Q3 is also referred to as the distribution phase or expansion.Given that information we expect to see expansion in majority of the market charts.
Our main focus is on DXY( Dollar index) which we pair against a basket of other currencies to get more insight on the foreign exchange market.We have witnessed a weak dollar in recent times. Weak is not an understatement as this is the poorest it has performed in recent years. The current prices were last seen during the covid era and has been used as baseline support for the pair in recent times.There have been a number of reasons for this and some carry more impact than others. Trade wars between the US and China have had the most impact and have been shaping up Trump's first year of his second term as president. Then lately we have witnessed the rising tensions in the middle east and feud between Islamic states and Israel.
We cannot foretell how lower we will go but we can keenly follow through the structures being broken and major price points being respected which will serve as indicators to the direction taken by the dxy.
With a calmer economic environment and support of strong economic data then we expect the dollar to rebound and propel higher. Not a full rebound but a play in the range between current lows and 102 which serves as the high for the previous two months.But if the current political turmoil persists and involvement of the US government in the middle eastern conflict then this will lead to an economic shakedown and an unpredictable dollar.
I hope this information will serve as a guide through this quarter. # SAFE TRADING EVERYONE.
Tariff uncertainty keeps weighing on the dollar.
Geopolitical risks in the Middle East have eased slightly amid signs of potential negotiations, prompting markets to shift their focus back to the upcoming FOMC and tariffs. Following talks with Canadian Prime Minister Carney, President Trump stated that a trade deal with Canada could be reached within weeks, and also confirmed that a trade agreement with the UK has been signed.
Meanwhile, markets are almost certain that the Fed will keep rates unchanged at the upcoming FOMC, with the probability priced at 99.8%. Wells Fargo expects the inflation outlook to rise due to the delayed impact of higher tariffs, projecting that the year-end median federal funds rate will climb by 25bps to 4.125%.
DXY is consolidating within the 97.50–98.50 range, remaining below both EMAs, which suggests a potential continuation of bearish momentum. If DXY breaks below the support at 98.00, the index may retreat to 97.50. Conversely, if DXY breaches above the resistance at 98.50 and the descending trendline, the index could gain upward momentum toward 99.00.
Central banks dominate calendar this week: Will Fed surprise?A pack of central bank decisions is set to drive market direction this week, with the Bank of Japan (Tuesday), Federal Reserve (Wednesday), Swiss National Bank (Thursday), and Bank of England (Thursday) all scheduled to announce their latest interest rate decisions.
The Federal Reserve will, of course, take center stage.
Despite President Trump’s continued call for a 100-basis point rate cut, Fed officials are widely expected to keep rates unchanged. However, softer-than-expected CPI and PPI data from last week may provide scope for a surprise.
The U.S. Dollar Index (DXY) is trading just above the key support zone at 98.00, a level not seen since early 2022. A decisive break below this area could open the door to further downside, potentially targeting the 96.00 region. However, a surprise from the Fed could trigger a rebound toward the 100.50–101.00 resistance band.
DXY H4 – Dollar Weakens Ahead of PPI Release DXY H4 – Dollar Weakens Ahead of PPI Release | Is the Market Pricing in a Fed Pivot?
🌐 Macro & Fundamental Context
As we head into the New York session on June 12, the market’s attention shifts to one critical data point: the US PPI (Producer Price Index). Following the softer-than-expected CPI reading of 2.4% YoY (vs. 2.5% forecast), the Dollar Index (DXY) dropped sharply—signaling fading inflation pressure and reigniting rate cut expectations.
✅ Bearish Fundamentals Building for the USD:
CPI miss fuels Fed rate cut bets (currently ~65% chance for September per FedWatch Tool).
US Treasury yields are easing, reflecting the market’s pricing of a less aggressive Fed.
Risk assets rallying as capital flows rotate away from USD into gold, equities, and long-duration bonds.
If today’s PPI also comes in below forecast, it could confirm a deeper correction in DXY. Conversely, a surprise PPI upside might trigger a short-term pullback.
📉 Technical Analysis – H4 Timeframe
🔹 Overall Trend:
DXY is locked within a clearly defined descending channel, with a consistent Lower High – Lower Low structure holding since late May.
🔹 Key Technical Zones:
Short-term resistance: 98.548 – likely to act as a ceiling unless PPI surprises to the upside.
Immediate support: 97.966 – a break below opens the door toward the key support zone at 97.191, which aligns with previous FVG imbalance and multi-timeframe demand.
🔹 EMA Structure:
Price remains below all major EMAs (13 – 34 – 89 – 200), confirming persistent bearish pressure.
EMA13 is currently acting as dynamic resistance on H4, pressing down on price.
🧠 Market Sentiment & Flow Insight
Investors are rotating out of USD as inflation fears fade and Fed easing expectations increase.
Risk-on sentiment is returning, benefiting gold and stocks while weighing on DXY.
However, a hot PPI print could spook the market briefly, leading to a corrective bounce in the Dollar before the trend resumes.
🔍 Scenarios to Watch:
PPI comes in lower than expected:
DXY may retest 98.548 resistance and reject lower.
Next targets: 97.966 → 97.191
PPI surprises to the upside:
Technical bounce toward 98.5–98.8 possible.
But trend remains bearish unless price reclaims 99.2+ zone.
✅ Conclusion
DXY remains under pressure from both macro and technical angles. The PPI report will be the next catalyst that determines whether this is a short-term dip or the continuation of a broader USD downtrend.
🎯 Tactical view: Favour short positions on DXY if price bounces into resistance and PPI supports the disinflation narrative. Target: 97.1 and below.
DXY. Midterm Analysis of the US Dollar IndexHey traders and investors!
📍 Context
On the monthly timeframe, the market was in a range. The price broke above the upper boundary and was long supported around the 101.080 level. This level was repeatedly tested by sellers and now appears to have been broken.
📊 Monthly targets: 89.20 and 88.300.
🔎 Analysis
Why might the downward movement continue?
Daily TF
On the daily chart, we can see that on the day buyers returned to the 101.080 level, the main volume was accumulated in a buyer candle right at and slightly above the level. This suggests the level was defended by sellers. This indicates they are currently in control, and the decline may continue. Let’s look at the nearest potential buyer activity levels.
11-day TF
The price has once again broken downward out of the range. Below, there is a small consolidation area formed during the previous upward movement. Its boundaries are: upper boundary — 97.385, lower boundary — 94.589.
🎯 Trade Idea: Rebounds from the upper boundary at 97.385 are possible, but overall the priority remains with a move into this range and towards the 95.00–94.589 zone.
This analysis is based on the Initiative Analysis concept (IA).
Wishing you profitable trades!