The U.S. Dollar Index (DXY) tracks the strength of the dollar against a basket of currencies. In recent years, the strength of the U.S. dollar has fallen against other currencies as a result of U.S. monetary policy.
It is a weighted geometric mean of the dollar's value relative to other select currencies:
You can see two head&shoulder in the chart. For the frist pattern, it's the beginning bearlish trend of DXY.
Now, the price is out of the decline channnel,it means that the decline trend has already change ! And the MACD is above the 0 zone.
If the head&shoulder bottom is formed ( it has not been formed yet!), the trend of USD will competely change! 94.25 will be ...
Just to put in a prospective, following traditional technical analysis can lead to good trades and necessarily no need to trade every other day. It is question to be asked if fundamental make the technical or fundamental can be predicted by the technical. Nevertheless it is always to good to have both technical and fundamental knowledge in your trading arsenal.
The USD would ususally move according to the USD strength i.e. DXY.
Lately, it hasn't been the case.
There could be multiple theories around it..from fundamental to political to technical.
I am wondering what gives!
One plausible explanation is may be the Fed policy has gone beyond what's needed. But then again, it's pretty much set in stone now!
Is it a ...
Dollar index currently moving near about 97.43, there is strong support in 4 hour chart, and 97.50 is a resistance in small time frames 1 hour, if if breaks 97.50, go higher. now it's not showing clear direction
DXY: LONG
E: 99.56
SL: 99.46
TP1: 99.8
TP2: 100.01
market broke prior resistance level (change of polarity).
market made hit major demand level where price have difficulty making new lows.
price volume is increasing as it goes up to my take profit levels.
0.618 retracement is used for target 2 which is at the break of the previous resistance level (change of ...
My projection for the DXY on the hourly chart:
Expecting the DXY to go down from the current levels i.e. 101.48 or from 101.57
It can go down till 100.63, retrace back a little from there and then head down to 100.08 zones.
Strong resistance at top with the completion of a ABCD Pattern & Bearish Butterfly pattern along the same zone.
But, CPI and Yellen ...
Since Nov 30 dollar index has moved up where as it's 25 day ROC went down. Looking at the chart it seems serious divergence & $ can correct from here against basket of other currencies.
I prefer going long on Euro particular from here.
ROC(25 days) shows that up move in the dollar is about to come to an end (at least for next few days) so shorting dollar against Japanese Yen & Euro looks good trade here.
