Hey Traders, In the upcoming week, we are closely monitoring the DXY (U.S. Dollar Index) for a potential buying opportunity around the 102.600 zone. The DXY has been trading in a downtrend, but it recently broke out of this trend. However, it is currently in a correction phase, attempting to retrace for the second time before potentially continuing its upward movement.
From a fundamental perspective, there are signals indicating a potential upcoming couple of rate hikes from the Federal Reserve in their next monetary policy decisions. This information can have a significant impact on the DXY and related currency pairs.
I would recommend keeping a close eye on the DXY, not just prior to the new trading week, but also on a daily basis. This will help you trade USD pairs more professionally by identifying their direction. Additionally, monitoring the correlation between the DXY and the crypto market, as well as equities and indices, can provide valuable insights for trading decisions.
By staying informed about the DXY's movements, you can enhance your trading strategy and make more informed decisions regarding USD pairs and related markets.