$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.
USDINDEX trade ideas
$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!
Possibility of uptrend It is expected that after some fluctuation and correction in the support area, a trend change will take place and we will witness the start of an upward trend. A break of the green resistance area will be a confirmation of the upward trend. Otherwise, the continuation of the corrective trend to the support areas will be possible.
DXY Asia delivery to London Delivery Analysis DXY
Asia delivery to London Delivery Analysis
JUNE 10 FRAMEWORK
*Monday was a sell off
*Current range is premium
*Previous range is a discount
*Minor buy side taken in dealer range
*Sell side liquidity was taken at open of Asia
Is today a raid the equal lows and a buy day?
*Asia expanded rallied to equal highs
*Retraced to the session .618 and consolidated
*Previous session discount coming into London
*I suspect that dxy might make a high of the week today and attack the major buy side
Great analysis and great delivery. This is builds my confidence. Where I struggle to trust it when it comes time to react and make the trade I see rather than the noise I get stuck in.
Very happy price played out to the Asia expansion and the highs I felt at 5 am I suspected for price to take. Celebrate what you can and keep going.
Bullish bounce?US Dollar Index (DXY) has bounced off the pivot which lines up with the 50% Fibonacci retracement and could rise to the 1st resistance.
Pivot: 98.91
1st Support: 98.36
1st Resistance: 99.60
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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