DXY: Bulls Are Winning! Long!
My dear friends,
Today we will analyse DXY together☺️
The recent price action suggests a shift in mid-term momentum. A break above the current local range around 97.541 will confirm the new direction upwards with the target being the next key level of 97.640 and a reconvened placement of a stop-loss beyond the range.
❤️Sending you lots of Love and Hugs❤️
DX.F trade ideas
US Dollar Flexes, Look For on 99.05Sunday War Map –
A weekly candle this strong leaves a mark. The dollar printed a 96.77 low to 98.18 high—a full-bodied bullish bar that demands respect.
Macro
This week is stacked with U.S. data that can shake the pullback narrative:
Tue 30 Sep – JOLTS & Consumer Confidence: first look at hiring demand and household mood.
Wed 1 Oct – ISM Manufacturing PMI: factory pulse and price pressures.
Thu 2 Oct – Durable Goods & Trade Data: capital-expenditure clues.
Fri 3 Oct – Non-Farm Payrolls & Hourly Earnings: the heavyweight. A hot jobs print could delay the December Fed-cut story (futures still price ~70% odds).
Technical Targets
Expect an early-week pullback as traders digest that massive weekly bar.
Two liquidity pools we’ve tracked for months were cleared last week; two upside targets still in play 98.2 and 98.3 remain before the chart reaches a true “bearish-range discount.”
Keep eyes on the 99.05 volume node—a well-defined supply zone where cross-market reactions (EUR, gold, crypto) could spike.
The dollar controls the tempo. Wait for the market to come to your levels; don’t chase the last candle.
USDX: demand zone holds but downside pressure remainsThe US dollar index remains under pressure, trading within a descending channel. The recent bounce from the support zone around 96.30–96.90 stalled at the EMAs and the supply zone near 98.30–98.60, where sellers reappeared. On the 4H chart, price has failed to sustain above 97.80, keeping the bearish scenario in play.
It is also important to note that the index is trading below the 200 EMA, reinforcing the bearish bias and signaling that sustainable recovery is less likely without strong fundamental catalysts.
If 96.90 breaks, the next downside target is 96.30, followed by 95.40. Stronger bearish momentum could even push the index toward 94.00, signaling further dollar weakness. For now, 96.30 acts as the key support barrier.
From a fundamental perspective, the dollar index remains weighed down by expectations of a dovish Fed and lower yields. Any hawkish surprise from Fed officials could lift price back toward 98.50, but the structure still favors bearish continuation.
This is exactly the kind of situation where market expectations diverge from reality, and the longer it lasts the more it feels like a trend reversal is near. But as always, emotions must be set aside — we wait for clear signals, not illusions.
DXY (US Dollar Index) 2H chart.DXY (US Dollar Index) 2H chart, you can see my drawn a breakout setup with targets marked.
Here’s the breakdown:
Current price: ~97.42
Trendline breakout setup is shown, with bullish continuation in mind.
First target point is marked around 98.00
Second target point is marked around 98.60
✅ So the bullish targets are:
TP1: 98.00
TP2: 98.60
DOLLAR INDEX (DXY): Overbought Market & Pullback
Dollar Index is testing a major daily resistance cluster now.
With a high probability, the market will retrace from that.
A double top pattern that was formed on an hourly time frame
indicates a clear overbought state.
The index may drop to 97.65
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DXY | Bullish Reversal from IFVG – Targeting 99.50 Supply ZoneHello Billionaires!!
In DXY D1 Projection we know The US Dollar Index has tapped into the Imbalance/Fair Value Gap (IFVG) and shown signs of bullish reaction after sweeping Sell-Side Liquidity (SSL). This aligns with a potential reversal model aiming towards higher liquidity levels.
🔹 Key Points:
SSL swept, confirming liquidity grab.
Price reacting from IFVG as demand zone.
Short-term retracement expected, followed by continuation.
Targeting the BPR supply zone around 99.50 and eventually Buy-Side Liquidity (BSL) above 100.00.
As long as DXY holds above the IFVG zone, bullish continuation remains the primary outlook.
Bearish drop off?The US Dollar Index (DXY) has rejected off the pivot and could drop to the 1st support.
Pivot: 97.85
1st Support: 96.61
1st Resistance: 98.70
Disclaimer:
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US Dollar: Hold Off On Selling The USD! Higher Prices Ahead?Welcome back to the Weekly Forex Forecast for the week of Sept 22 - 26th.
In this video, we will analyze the following FX market: USD Dollar
The USD recovered last Friday after the FED cut the rate .25 basis points. The USD was also supported by higher T-note yields.
What's next?
Although price swept the Swing Low last week, it recovered, trading back up into the consolidation. There is a bullish tone to this movement, and a manipulative one as well. The sell side LQ was taken, followed by a quick recovery.
The highlighted bullish FVG indicates bullish order flow.
There is a potential iFVG just above the +FVG. Monitor it to see if price will respect it as support. Should it hold, look to long the USD.
Wait and react. Do not predict.
Enjoy!
May profits be upon you.
Leave any questions or comments in the comment section.
I appreciate any feedback from my viewers!
Disclaimer:
I do not provide personal investment advice and I am not a qualified licensed investment advisor.
All information found here, including any ideas, opinions, views, predictions, forecasts, commentaries, suggestions, expressed or implied herein, are for informational, entertainment or educational purposes only and should not be construed as personal investment advice. While the information provided is believed to be accurate, it may include errors or inaccuracies.
I will not and cannot be held liable for any actions you take as a result of anything you read here.
Conduct your own due diligence, or consult a licensed financial advisor or broker before making any and all investment decisions. Any investments, trades, speculations, or decisions made on the basis of any information found on this channel, expressed or implied herein, are committed at your own risk, financial or otherwise.
DXY – Potential Inverted Head & Shoulders FormationTVC:DXY
The DXY is currently consolidating in a way that suggests the development of an inverted head and shoulders pattern. We have support distributed between $96.37 and $96.21 , creating a potential base for this pattern. On the upside, the recent breakout through $97.45 highlights bullish intent, with the next critical level being the daily fractal resistance at $97.82 , which acts as the neckline .
Breakout Implications
A confirmed break and close above $97.82 would validate the pattern and shift momentum toward higher targets. If this scenario plays out, extension levels become the next logical zones of interest:
127% Fibonacci extension: $98.60 - bearish butterfly pattern
161.8% Fibonacci extension: $99.26 - bearish crab pattern
200% Fibonacci extension: $99.38 - H&S default target
Risk Factors & Harmonic Patterns
While the bullish case is clear above $97.82 , caution is warranted. Harmonic patterns may begin to take shape around $98.60 and $99.26 , which often serve as areas of exhaustion or reversal. These zones could lead to temporary pullbacks, and in a broader context, may even reassert the prevailing downtrend seen in recent months.
Key Takeaway
The confirmation or rejection of the $97.82 neckline will be pivotal in defining the next directional phase for the DXY. We should monitor price behavior carefully at each Fibonacci extension, balancing the potential for continuation against the risk of harmonic-driven reversals.
Safe Trades,
André Cardoso
Dollar Index Holds Firm on Fed CautionFundamental approach:
- DXY edged higher this week amid firmer US data and cautious Fed rhetoric that tempered aggressive easing bets. Risk sentiment was mixed, with markets awaiting core PCE for policy cues, supporting the dollar on rate differentials and data resilience.
- Stronger jobless claims and an upgraded Q2 GDP print underpinned the greenback, while Fed speakers highlighted divisions over the pace of additional cuts, limiting the index's downside.
- DXY could stabilize or firm if core PCE surprises, while a soft print may rekindle cut expectations and weigh on the dollar.
Technical approach:
- DXY broke the descending trendline and retested the key resistance at around 98.60. The index is around EMA21, and it is awaiting an apparent breakout to determine the upcoming trend.
- If DXY breaks above EMA21 and key resistance at 98.60, the index may retest the following resistance at 100.
- On the contrary, failing to close above 98.60 may lead the index to retest EMA78 or the following support at around 97.15.
Analysis by: Dat Tong, Senior Financial Markets Strategist at Exness
DXY Breakout Trade Setup – Bullish Channel & High R:R OpportunitChart Overview:
Instrument: U.S. Dollar Currency Index (DXY)
Timeframe: 1 Hour (1H)
Current Price: 98.371
Analysis Date: September 26, 2025
🔍 Technical Structure:
1. Bullish Channel:
A clear ascending channel is drawn, indicating a strong short-term uptrend.
Price action has been respecting the channel well, moving between the upper and lower trendlines.
A bullish breakout is either anticipated or just confirmed above the channel.
🟦 Trade Setup (Long Position):
✅ Entry Point:
Price: 98.267 (blue horizontal line labeled "Entry Point")
This is slightly below the current price (98.371), suggesting an entry on a slight pullback after breakout.
🛑 Stop Loss:
Price: 97.986 (also marked 97.982 on the lower blue line)
Located below a recent support zone and below the breakout structure.
This gives a safety buffer if the breakout fails.
🎯 Target Point (Take Profit):
Price: 99.676
This is based on the measured move from the height of the channel, projected upward from the breakout point.
📐 Risk-to-Reward Ratio (RRR):
Very favorable; visually it appears to be around 4:1 or higher.
Small stop loss area (red box) relative to the large target area (green box).
High RRR makes this setup attractive for risk-managed traders.
🔎 Additional Observations:
Trend: Strong bullish momentum leading into the breakout.
Volume / Confirmation: Not shown on the chart, but ideally you’d want volume confirmation for the breakout.
Timing: Entry and confirmation should align with break and retest of the channel top.
✅ Summary of the Trade Plan:
Component Value
Entry 98.267
Stop Loss 97.986
Take Profit 99.676
Risk-Reward ~4:1
Trade Type Long (Buy)
Strategy Breakout + Retest
⚠️ Important Notes:
Wait for confirmation (like a bullish candle close above the channel or successful retest).
Be aware of macroeconomic news that can affect DXY (e.g., Fed announcements, interest rate decisions, inflation data).
Use position sizing appropriate to your risk tolerance.
DXY Bullish Channel Setup with 1:4.5 RRR (Entry 97.50 → Target 9Chart Analysis
Trend:
Price is moving inside a rising parallel channel (marked in red with blue borders).
Currently near the mid-to-upper side of the channel.
Setup Highlighted:
Entry Point: Around 97.50 – 97.52 (support zone).
Stop Loss: Around 97.15 – 97.18 (below support and channel bottom).
Target Point: Around 98.97 – 98.98 (near channel top).
Risk-to-Reward Ratio (RRR):
Risk: ~0.33 points (97.50 → 97.18).
Reward: ~1.46 points (97.50 → 98.98).
RRR ≈ 1:4.5, which is a strong setup.
Price Action:
The chart suggests a retest of support (97.50 area) before a bullish continuation.
If buyers hold this level, upward momentum could push toward the 98.90–99.00 zone.
Invalidation:
A breakdown below 97.15 would invalidate the long setup and may push price toward 96.80 – 96.50 support levels.
📌 Summary
Bias: Bullish (as long as price holds above 97.15).
Plan: Wait for a pullback to the entry zone (97.50) for confirmation.
Target: 98.90 – 99.00.
Stop Loss: Below 97.15.
Strong RRR trade idea within the bullish channel.
MIXED SIGNALS ON THE DOLLAR INDEXThe dollar index has beautifully retraced 100% of a bearish Butterfly pattern that was identified between July 1st and August 13th 2025, hitting the monthly support target of 95.911. There has been a strong bounce from this support zone into the weekly closing range.
What we currently have now is also a bullish Butterfly pattern on the daily chart and the bounce from the support zone has retraced to exactly the 0.382 fib level (97.336). The weekly hammer candle suggests that bulls will attempt to reach the 0.5 fib level, however lower time frames shows that the bulls are losing their strength. As such, I am not expecting DXY to continue grinding up next week without a major pullback to retest the weekly candle wicks. Basically expecting a lot of volatility in both directions.
I thank you for checking out my publication and I wish you a successful trading week. Cheers!!