DXY has always been a barometer for me. However, since Dec 2022 till today, it has been lack luster. Most of the time just consolidation, which is causing other pair such as GBPUSD & EURUSD to behave erratically. I suppose year end and beginning of the year are times where price action is a little harder to read.
None the less, in the past week, DXY have been steadily building some support at 101.000. Perhaps the 100.000 area is heavily defended, which I am not 100% certain why but we shall see.
Looking at Ichimoku Kinko Hyo, on H4 timeframe, it looks like Sanyaku Kouten (3 Bullish Signs) is starting to form. Will have to monitor day by day to observe its formation.
Jobs market in the US has been robust and resilient. This gives a lot of reason for Federal Reserve to hike rates but at a slower pace. 25 basis point seems to be the key figure in mainstream media.
Hence, when interest rate goes up, that will be bullish for the Dollar. Could this Federal Fund Rate high impact news next Wednesday be the catalyst to get DXY out of the consolidation? Maybe.
With China's re-opening, there is definitely some optimism building up globally and it feels like, we could potentially dodge the recession bullet. Can we?
Anyways, with that said, there might be a potential risk off scenario with DXY next week and that directly translate to bearishness for the others.
Good luck and good trading.
Trader Sifu Steve @ XeroAcademy Malaysia
None the less, in the past week, DXY have been steadily building some support at 101.000. Perhaps the 100.000 area is heavily defended, which I am not 100% certain why but we shall see.
Looking at Ichimoku Kinko Hyo, on H4 timeframe, it looks like Sanyaku Kouten (3 Bullish Signs) is starting to form. Will have to monitor day by day to observe its formation.
Jobs market in the US has been robust and resilient. This gives a lot of reason for Federal Reserve to hike rates but at a slower pace. 25 basis point seems to be the key figure in mainstream media.
Hence, when interest rate goes up, that will be bullish for the Dollar. Could this Federal Fund Rate high impact news next Wednesday be the catalyst to get DXY out of the consolidation? Maybe.
With China's re-opening, there is definitely some optimism building up globally and it feels like, we could potentially dodge the recession bullet. Can we?
Anyways, with that said, there might be a potential risk off scenario with DXY next week and that directly translate to bearishness for the others.
Good luck and good trading.
Trader Sifu Steve @ XeroAcademy Malaysia