DXY Bullish After Iran Conflict — Safe-Haven or Something Else?

Mar 3

DXY Bullish After Iran Conflict — Safe-Haven or Something Else?

DXY created a strong bullish breakout from a very large pattern that had been forming for about 3 months.

Currently, DXY broke out of this pattern showing that USD came back stronger after the US started the war with Iran.
Why this happened is another question, as usual :)

The usual explanation is safe-haven demand. We understand that the money can move to JPY or CHF as haven currencies, but to USD at a time when the US is involved in this war?

However, this is what happens 90% of the time. The US starts a war, and the USD strengthens; the indices strengthen, and so do the stocks. The entire US sector benefits from the war as they tend to rebuild these destroyed areas as a peacemaker and also use a little bit of their resources, like with Venezuela's oil.
This is the reality :)

Targets can be found on the chart:
100.25
101.80
103.30

You may find more details in the chart.
Thank you and good luck! 🍀

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Mar 5

Trade active

After the dollar index reached 99.70 on Monday, the price began a corrective phase, falling to 98.90, which corresponds to the support line of the major pattern.

It seems that a larger accumulation is taking place before the dollar index moves further.

The USD has been quiet for the past 2 days, but it could resume the upward movement soon, as shown in the chart with the first target at 100.25.

A break through this area should push the USD towards further gains.

Mar 6

Note

📣DXY Remains Clearly bullish and well positioned for the next

For today DXY is up by nearly +0.23% and the NFP data can probably push it up even more

The U.S. dollar rose slightly on Friday and was on track for its biggest weekly increase in over a year, as the growing tensions in the Middle East boosted demand for assets considered safer during times of uncertainty.

The ongoing crisis pushed oil prices higher, increasing inflation concerns in countries that rely heavily on energy imports. It also disrupted expectations about future policy decisions by the Federal Reserve and other major central banks.

Previous optimism about a possible easing of tensions in the Iran conflict has faded, replaced by renewed uncertainty and worries over how long the fighting might continue.