DXY BULLISH Lets wait for High Impact news first.03 JUN 2025
DXY BULLISH,
currently retrace and price has break out to downside. but immidately reverse back to inside.
BUY USDXXX atau SELL XXXUSD & GOLD
BIAS To Bullish with momentum.
There is high impact news in 1 hours may change the outlook.
Lets wait and see.
DOLLARINDEX trade ideas
USDollar Is Making An Intraday Pullback Within DowntrendGood morning traders! Stocks keep pushing higher along with yields, so it looks like 10Y US Notes could still see lower support levels, and that’s why USdollar is in a bigger intraday correction. What we want to say is that while the 10Y US Notes are still searching for support, the DXY can stay in recovery mode or at least sideways. In the meantime, stocks can easily see even higher levels after NVIDIA surpassed earnings.
Looking at the intraday USDollar Index – DXY chart, we see a leading diagonal formation, so we are tracking now an intraday abc correction before a bearish continuation, thus keep an eye on GAP from May 18 around 101 level that can be filled and may act as a resistance before a bearish continuation.
DOLLAR INDEXRelationship Between the Dollar Index (DXY), 10-Year Bond Yield, Interest Rates, and Carry Trade
1. Dollar Index (DXY) and 10-Year Bond Yield
The DXY and the US 10-year Treasury yield generally have a direct (positive) relationship:
When the 10-year yield rises, the dollar tends to strengthen.
When yields fall, the dollar usually weakens.
This is because higher yields attract foreign capital seeking better returns, increasing demand for the US dollar and pushing up its value.
However, this relationship is not perfect and can be influenced by other factors like economic data, geopolitical risks, and monetary policy expectations.
2. Interest Rates and Their Impact
Interest rates set by central banks (e.g., Fed funds rate) influence bond yields and currency values.
Higher interest rates generally lead to higher bond yields, attracting capital inflows and strengthening the currency (USD).
Conversely, lower rates tend to weaken the currency as investors seek higher yields elsewhere.
The interest rate differential between countries is crucial: it reflects the relative attractiveness of holding one currency over another, driving capital flows and currency movements.
3. Carry Trade and Its Role
The carry trade involves borrowing in a currency with low interest rates and investing in a currency with higher yields to earn the interest rate differential.
For example, investors may borrow in Japanese yen (low rates) and invest in US dollars (higher rates), buying US bonds or assets.
This strategy increases demand for the higher-yielding currency (USD), pushing up its value and often correlating with rising bond yields in that country.
Carry trades are typically based on short-term interest rate differentials, but recent research indicates that the entire yield curve (including long-term yields) also affects currency returns and carry trade profitability.
The uncovered interest rate parity (UIP) theory suggests carry trade returns should be zero after adjusting for exchange rate changes, but empirically, carry trades have yielded excess returns, partly due to risk premia and market inefficiencies.
what is UIP???
Uncovered Interest Rate Parity (UIP) is a fundamental economic theory that relates the difference in nominal interest rates between two countries to the expected change in their currency exchange rates over the same period. It asserts that the expected depreciation or appreciation of a currency will offset the interest rate differential, eliminating the possibility of arbitrage profits from borrowing in one currency and investing in another without hedging exchange rate risk.
Key Points about UIP:
Interest Rate Differential Equals Expected Exchange Rate Change:
The difference between the interest rates of two countries should equal the expected percentage change in the exchange rate between their currencies. For example, if Country A has a higher interest rate than Country B, its currency is expected to depreciate relative to Country B’s currency by approximately the interest rate difference.
No Arbitrage Condition Without Hedging:
Unlike covered interest rate parity (which uses forward contracts to hedge exchange rate risk), UIP assumes investors do not hedge their currency exposure. Therefore, the expected spot exchange rate at the end of the investment horizon adjusts to offset potential gains from interest rate differences.
Implication:
If a country offers higher interest rates, its currency is expected to depreciate to prevent riskless profit opportunities. This reflects foreign exchange market equilibrium.
Relation to Law of One Price and Purchasing Power Parity (PPP):
UIP is connected to the law of one price, which states that identical goods should cost the same globally when prices are expressed in a common currency. Similarly, UIP ensures that returns on investments in different currencies are equalized once exchange rate changes are considered.
Practical Use:
UIP helps explain and forecast currency movements based on interest rate differentials but is often violated in the short term due to market imperfections, risk premiums, and investor behavior.
In summary, Uncovered Interest Rate Parity states that the expected change in exchange rates between two currencies offsets the interest rate differential, so investors earn the same return regardless of the currency in which they invest, assuming no hedging of currency risk.
4. Bond Prices and Interest Rates
Bond prices and interest rates have an inverse relationship:
When interest rates rise, bond prices fall.
When interest rates fall, bond prices rise.
This dynamic affects currency values indirectly, as falling bond prices (rising yields) attract capital inflows, strengthening the currency and the DXY.
Summary Table
Factor Relationship with USD / DXY Explanation
10-Year Bond Yield Positive correlation Higher yields attract foreign capital, boosting USD
Interest Rates Positive correlation Higher rates increase returns on USD assets
Interest Rate Differential Drives carry trade and currency flows Larger spread favors higher-yielding currency
Carry Trade Supports USD when borrowing low-rate currency and investing in USD Increases demand for USD and US bonds
Bond Prices Inverse to yields; indirectly affects USD Falling bond prices (rising yields) strengthen USD
Conclusion
The US Dollar Index (DXY) generally moves in tandem with the 10-year Treasury yield and interest rates because higher yields and rates attract capital inflows, strengthening the dollar. The carry trade exploits interest rate differentials, further supporting the dollar when investors borrow in low-rate currencies to invest in higher-yielding US assets. Bond prices inversely relate to yields, and their fluctuations indirectly influence the dollar through these mechanisms.
#DOLLAR #GOLD #
USD Index (DXY) –
🔧 Technical:
Trading in a clear downtrend channel
Key resistance: 100.08
Target: 91.83, then 87.64
Bearish bias remains unless price breaks above 102.33
🌍 Fundamentals:
Fed rate cut expectations weighing on the dollar
Weak U.S. data and slowing inflation support downside
Global shift away from USD adds pressure
📉 Headline:
“DXY Weakens Below 100 – Bearish Pressure Builds Toward 91.83”
Bearish drop?US Dollar Index (DXY) is risng towards the pivot and could reverse to the 1st support.
Pivot: 99.10
1st Support: 98.01
1st Resistance: 99.94
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U.S. Dollar Index . 1MLong-term DXY (Dollar Index) Analysis
Greetings to all valued followers,
This is a long-term analysis and macroeconomic outlook based on Smart Money Concepts (SMC), carefully charted with key reactive zones highlighted. Within this analysis, significant support levels, imbalance zones, and liquidity pools are outlined, which can guide your market decisions as the price reaches these areas.
Key Zones Based on the Monthly Timeframe
Support (Monthly): 97.441
This level is considered the primary support. It’s expected that, should the price reach this zone, a reaction or corrective rally might unfold.
Support (Monthly): 94.629
This is the secondary support, which acts as the next target if the previous support is broken. Typically, these supports indicate potential reversal points or short-term retracements.
Imbalance Zone (Unfinished Business):
Range: 91.782 – 91.436
This zone represents an Imbalance, signalling a strong disequilibrium in the market. The market will likely revisit this area to restore balance (rebalancing).
Significance: It acts as a Liquidity Magnet — if the Federal Reserve fails to provide sufficient liquidity and the support line is broken, the price will tend to continue downward into this zone to gather the required liquidity for economic rebuilding and confirmation of a bearish trend.
Liquidity Pool:
Liquidity (M): 89.209
This is a liquidity pool where, should the bearish momentum persist, the price is expected to test or reach this level. A significant volume of buy and sell orders are accumulated here, making it a crucial target for further downside.
Charting Summary and Outlook:
The monthly supports at 97.441 and 94.629 are key areas to watch, with market reactions to be evaluated via Order Blocks and Break of Structure (BOS) signals.
The imbalance zone between 91.782 and 91.436 may trigger a retracement within the ongoing downtrend — traders should look for confirmation signals in price action.
If the market fails to gather enough liquidity in these zones, the next downside target would be around 89.209, indicating a continuation of the bearish trend.
Persistent concerns about the US economy are weighing on the DXY
US-China tensions deepened as President Trump criticized China’s rare earth exports and threatened broader tech restrictions and visa cancellations for Chinese students. He also vowed to double tariffs on foreign steel to 50% to strengthen the US steel industry. April headline PCE inflation eased to 2.1% (prev. 2.3%, cons. 2.2%), partly soothing tariff-related inflation concerns.
DXY broke below the 99.00 threshold and dropped to a 6-week low. EMA21 is widening its gap with EMA78, suggesting a potential extension of the bearish structure. If DXY breaks below the support at 98.00, the index may decline further to 97.00. Conversely, if DXY reclaims the resistance at 99.00 and breaches above EMA21, the index could advance to 99.50.
DXY: Strong Growth Ahead! Long!
My dear friends,
Today we will analyse DXY together☺️
The recent price action suggests a shift in mid-term momentum. A break above the current local range around 98.380 will confirm the new direction upwards with the target being the next key level of 98.653 and a reconvened placement of a stop-loss beyond the range.
❤️Sending you lots of Love and Hugs❤️
DXY Short-Term Reversal Zone in SightUS Dollar Index (DXY) is approaching a strong support zone at 98.90–98.00, which has historically acted as a base for bullish reversals. The price is now testing the lower bound of this zone after a steady downtrend from the 101.94 high.
Key Technical Structure:
Support Zone: 98.90–98.00 (tested 3+ times)
Double Bottom Potential forming if bulls hold the zone
Upside Targets:
101.94: Key horizontal resistance
103.50: Swing high from early April
Scenarios to Watch:
🔹 Bullish Rebound:
Price bounces off 98.90–98.00 support
Confirmation: Break and close above 100.50 near-term resistance
Could fuel move back to 101.94, possibly 103.50
🔹 Bearish Breakdown:
Daily close below 98.00 would invalidate bullish setup
Opens downside to 97.00 and even 95.50
Macro Drivers to Watch:
FOMC speakers and interest rate guidance
US jobless claims or inflation surprise
Risk-off sentiment (benefits USD) vs. continued global risk appetite
Conclusion:
DXY is trading at a make-or-break support zone. Watch for clear bullish reaction or bearish breakdown before committing. The setup favors a bounce unless 98.00 fails.
DXY Update..PWL takenGood day traders I’m back yet again with another update but this this it’s DXY(dollarindex)).
Price has taken previous week’s low, and for me that’s the manipulation phase in the power of 3 because my bias is bullish on the dollar and bearish on foreign currencies. Price has taken the PWL in a zone/area where we saw price react higher in that BPR zone/area. For the rest of the week I personally believe we can expect higher prices on DXY, Atleast till the midpoint of that gap above price. ICT teaches more on the importance of that halfway/midpoint of gaps and other PD arrays.
Since we are in a discount zone we can expect price to move higher into the premium range of the daily TF dealing range and our first liquidity (internal) is also inside the premium zone.
Will the Dollar’s Drop Fuel More Gold Upside After Weak PCE DXY OUTLOOK – Will the Dollar’s Drop Fuel More Gold Upside After Weak PCE and Trade Tensions?
📉 TECHNICAL STRUCTURE – DXY CONTINUES TO WEAKEN
The US Dollar Index (DXY) has failed to hold the 99.20–99.30 support zone and continues to respect its bearish structure on the H2 chart. The sharp sell-off at the end of May was a direct response to weaker-than-expected PCE inflation data, combined with growing political uncertainty surrounding US–China and US–EU trade negotiations.
🔻 Key Resistance Levels: 99.234 – 99.618
🔻 Key Support Zone: 98.030 – A clean break below this may open the door toward 97.50
🌍 MACRO CONTEXT – USD UNDER PRESSURE ON MULTIPLE FRONTS
Trump’s tariff decisions remain unclear. While some deadlines were delayed (e.g., steel tariffs on the EU), no substantial agreements have been reached.
Core PCE inflation – the Fed’s preferred gauge – continues to ease, reducing expectations of further rate hikes in the short term.
Institutional flows are shifting toward safe havens like gold, especially as uncertainty clouds the outlook for both US fiscal and trade policy.
📊 IMPACT ON XAUUSD – DOLLAR DROP GIVES GOLD ROOM TO RALLY
Gold remains supported by:
A weakening DXY trend
A bullish structure on H1 with EMA 13–34–89–200 alignment in favor of upside
Strong safe-haven demand heading into a new month with fresh capital inflows
If DXY breaks below 98.70 and slides toward 98.030, gold could extend its rally toward key resistance zones at 3348 – 3361.
🎯 TRADING STRATEGY (Based on DXY Bearish Continuation):
Prioritize buy setups on XAUUSD if DXY fails to reclaim the 99.23 resistance
Watch for a potential DXY pullback to resistance – if rejected, this would confirm momentum for gold to climb further
📌 NOTE: Traders should stay alert to any major news from the Fed or new developments in US–China–EU trade talks. While the current DXY structure favors continued downside, short-term pullbacks can provide gold with consolidation before another leg higher.
DXY Breakdown Could Trigger a Massive Market Shift !Hello Traders 🐺
I hope you're doing well!
In this idea, I want to once again talk about the DXY situation, because in my opinion, we're currently at a very critical level—and it's decision time!
First, let’s take a look at the chart, and then I’ll explain the potential impact this setup could have on other markets—especially crypto and stocks:
As you can see in the daily chart, DXY was perfectly supported by the red box area—which has now flipped into resistance. In my opinion, there are two key levels to watch here.
There’s an old rule in technical analysis:
"The more a level gets tested, the weaker it becomes."
And that’s exactly what we saw—DXY tested that support zone multiple times. Once it finally broke down, we witnessed a massive pump in dollar-hedged assets!
Now, the price is retesting that zone as resistance. If DXY breaks below its previous low, we could see a strong bullish wave in both crypto and equity markets.
🔎 So what does this mean for different markets?
1. Crypto Market
If DXY gets rejected and breaks lower, we’re likely to see a big move in BTC, and in my opinion, an even crazier rally in altcoins—especially since BTC.D is near its peak (~70%). If it collapses, the altcoin party begins!
2. Stock Market
A weaker dollar = boost for U.S. exports
Foreign investors love cheaper dollars = more capital flows into U.S. assets
In short?
📈 It's a green light for equity bulls.
3. Global Markets (Commodities & Gold)
Dollar down? Commodities up.
Gold shines as the go-to hedge in times of dollar weakness.
Oil and metals surge, since they’re priced in USD.
When the DXY slides, hard assets come alive.
I hope you enjoyed this idea, my friends!
Remember: markets reward those who stay patient and act with conviction. Jump on the train at the right moment. You’ve got my word:
Buy when there’s fear, sell when there’s greed.
🐺 Discipline is rarely enjoyable, but almost always profitable. 🐺
🐺 KIU_COIN 🐺
USDX-NEURAL SELL strategy 6 hourly chart GANNThe index is under pressure, and it has moved as expectation since I started my travels. However, am cautious selling right now, as there is some room to see minor recovery before lower. Also we are near a previous bottom.
Strategy SELL @ 99.00 - 99.25 and take profit near 96.50 for now.
Let's Connect !Hey Traders!
I’ve been sharing a lot of trade setups recently—and I’m thrilled many of them have been playing out successfully.
Now I want to take things to the next level and connect more with you.
Drop a quick comment below—whether it’s feedback, suggestions, or something you'd like help with. I want to tailor my content to what really matters to you if possible.
If the feedback remains limited, I may explore other ways to engage or shift focus.
Until then, I’ll keep posting and see if it continues to bring value to the community.
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Let’s build something powerful together.
Weekly CLS I Model 2 I Target CLS Highs / OBHey, Market Warriors, here is another outlook on DXY. If you’ve been following me, you already know my setups are based on CLS Footprint, a Key Level, Liquidity and a specific personal execution model.
If you haven't followed me yet, start now.
System is completely mechanical and repeatable— designed to remove emotions, opinions, and impulsive decisions. No messy diagonal lines. No random drawings of multiple patterns Just one setup and market context working on all markets.
🧩 What is CLS?
CLS is real smart money — the combined power of major investment banks and central banks moving over 6.5 trillion dollars a day. Understanding their operations is key to markets.
✅ Understanding the behavior of CLS allows you to position yourself with the giants during the market manipulations — leading to buying lows and selling highs - cleaner entries, clearer exits, and consistent profits.
📍 Model 1
is right after the manipulation of the CLS candle when CIOD occurs, and we are targeting 50% of the CLS range. H4 CLS ranges supported by HTF go straight to the opposing range.
"Adapt what is useful, reject what is useless, and add what is specifically your own."
Please don't gamble on this setup, just because you seen majority of my setups played out. You can never know which trade will work and which not. It's just a probability. Rather take this as opportunity to learn.
David Perk aka Dave FX Hunter ⚔️
👍 Hit like if you find this analysis helpful, and don't hesitate to ask me questions, Im always happy to help others and respectfully discuss other opinions.
DXY Under Pressure: Breakdown Incoming Below 99.00?After testing the 102 resistance zone in mid-May, the TVC:DXY resumed its downward move, dropping back into the 98.50–99.00 support zone.
The brief spike above the psychological 100 was quickly rejected, and price has since rolled over — currently trading around 99.27 at the time of posting.
🔻 The downside pressure is strong, and a break below support looks imminent.
If that break occurs:
🎯 Short-term target: 98 (approx. 1% drop)
📉 Medium-term potential: A deeper decline toward 95