Hi traders!
Here we have the DXY chart. It has been ranging in this wedge since the start of the 2000's.
This charts feature the USD while it was affected by the DOT COM boom and the housing crisis of 2007-2008. You can clearly see the highs and the lows of all this timeframe.
USD went through QE 1, 2, 3 + Operation Twist with the one and only Ben Bernanke at the helm of the Federal Reserve. When he finally got replaced by Janet Yellen, there was already talks about QT (Tightening). Although it wasn't official yet, the DXY started its rise. The price broke from 80 to 100 without any real correction. It broke through the blue zone I highlighted in the chart.
After this break, it held pretty nicely each time the price attempted to go down in this zone. The DXY made highs that we haven't seen since 2003. Now for the first time since somewhere in 2015, the price dipped back again in this blue zone. It wicked in it and bounced back out. We already such movement back around, you guessed it, 2003.
During this current downtrend of the DXY, the EUR & GBP vs USD, gained quite a lot of the strength both have loss for different reasons. This newfound strength in these pairs hasn't helped the DXY find good legs to run with. This brings us to the conflicting blue zone. Will the USD find a way to go back up to test again the trend line?
Fundamentally, the USD, with Trump as the president, hasn't shown much of anything. We kind of know that Yellen is in a hot seat since Trump took over as President of the United States. The Federal Reserve repeats itself with the same statement each month on what they intend to do but they have nothing to show for it... yet! Also, the country has been hit by a hurricane yet again which will slow the growth of the economy as it redirects funds toward helping the family affected by this crisis.
My personal bias is that the USD (and this DXY chart) will break down this blue zone to go test the bottom part of the wedge before we have some type of cataclysm coming either from Trump or the Federal Reserve itself. When this event will happen, the DXY will rocket itself up to create new highs.
Trade safe!
Disclaimer: This is my trading analysis, it is not an invite or recommendation to trade.
Here we have the DXY chart. It has been ranging in this wedge since the start of the 2000's.
This charts feature the USD while it was affected by the DOT COM boom and the housing crisis of 2007-2008. You can clearly see the highs and the lows of all this timeframe.
USD went through QE 1, 2, 3 + Operation Twist with the one and only Ben Bernanke at the helm of the Federal Reserve. When he finally got replaced by Janet Yellen, there was already talks about QT (Tightening). Although it wasn't official yet, the DXY started its rise. The price broke from 80 to 100 without any real correction. It broke through the blue zone I highlighted in the chart.
After this break, it held pretty nicely each time the price attempted to go down in this zone. The DXY made highs that we haven't seen since 2003. Now for the first time since somewhere in 2015, the price dipped back again in this blue zone. It wicked in it and bounced back out. We already such movement back around, you guessed it, 2003.
During this current downtrend of the DXY, the EUR & GBP vs USD, gained quite a lot of the strength both have loss for different reasons. This newfound strength in these pairs hasn't helped the DXY find good legs to run with. This brings us to the conflicting blue zone. Will the USD find a way to go back up to test again the trend line?
Fundamentally, the USD, with Trump as the president, hasn't shown much of anything. We kind of know that Yellen is in a hot seat since Trump took over as President of the United States. The Federal Reserve repeats itself with the same statement each month on what they intend to do but they have nothing to show for it... yet! Also, the country has been hit by a hurricane yet again which will slow the growth of the economy as it redirects funds toward helping the family affected by this crisis.
My personal bias is that the USD (and this DXY chart) will break down this blue zone to go test the bottom part of the wedge before we have some type of cataclysm coming either from Trump or the Federal Reserve itself. When this event will happen, the DXY will rocket itself up to create new highs.
Trade safe!
Disclaimer: This is my trading analysis, it is not an invite or recommendation to trade.