US10Y & DXY downward trend continues. US10Y 4% triggers DXY 96.TVC:US10Y has been in a downward trend despite of US Fed holding the rates stable. In this blog space I have been following the downward sloping channel since Jan 2025. Since our May 2 prediction of a 4% in %US10Y we are very much on that glide path to lower low.
TVC:US10Y making new lows. 4% upcoming. 3.5% target low. for TVC:US10Y by RabishankarBiswal — TradingView
And then we add TVC:DXY into the mix which is also making lower lows and lower highs. I had a near term target of 96 on TVC:DXY and 90 by year end. This seems unreasonable now. I must change my outlook, when the charts change.
As we see, whenever TVC:DXY touches the lower bound of the downward slopping channel it tends to rebound to the mid-point of the channel. If it does so, then we might see a 100 on TVC:DXY Before we plunge down to 96 or lower.
Hence, I revise my prediction to be bullish on TVC:DXY , but that will have no impact on TVC:US10Y which is headed lower due to Fed cutting cycle and probably higher TVC:DXY dampening inflation.
Verdict: Revise our prediction: Short term bullish on OPOFINANCE:DXY. Long term bearish. Key levels: TVC:DXY to 100 first then 96. US10Y remains bearish with 4% by Dec 2025.
