Correct analysis and continuation of the trendAs we mentioned in the previous analysis, the price hit resistance and dropped again.
As you know, major news starts from Wednesday, and until then there’s no significant news for the Dollar Index. Most likely, the price will continue its decline toward the 97.150 area, reaching a key support level. There’s also a strong possibility that if the news comes out in favor of the dollar, we could see a powerful rebound from that zone.
DXY trade ideas
MY POSSIBLE 3 OPTIONS FOR THE DXY NEXT WEEKTrading week 08 - 12 SEPTEMBER 2025
On Friday last week poor USD NFP readings caused a strong selloff of the Index however this didn’t leave the consolidating channel and we saw a re-bounce from 97.500 area of support.
This week a selloff in the 98.054 area could see the index testing the lower lows 96.700 and 96.470; if 98.054 is broken the next levels I will monitor are 98.300 and 98.743 as possible selloff entries. If the price breaks these levels and reaches 99.200 we could see more uptrend the DXY rallying to the 99.900 level of resistance.
Okay, here is a brief analysis of the US Dollar Index (DXY). **Okay, here is a brief analysis of the US Dollar Index (DXY).
**Fundamental Analysis:**
The US Dollar Index (DXY) is a composite measure of the dollar's value against a basket of major currencies. Its trajectory is primarily driven by the Federal Reserve's monetary policy stance and the relative strength of the US economy. The dollar typically strengthens when the Fed adopts a hawkish stance (hiking rates or signaling hikes), US economic data outperforms (e.g., NFP, GDP, CPI exceeding expectations), or global risk-off sentiment sparks safe-haven demand. Conversely, it often weakens on expectations of Fed rate cuts, weak US data, or improved global risk appetite.
**Technical Analysis:**
From a technical perspective, after a prolonged rally fueled by an aggressive hiking cycle, the DXY has recently been consolidating at high levels. The 105-106 zone is a crucial pivot point. A decisive break and hold above 107 could signal a resumption of the uptrend. However, a sustained break below key support near 104 might indicate exhausted bullish momentum and risk a deeper correction. Traders should watch its correlation with US Treasury yields closely.
**Summary and Outlook:**
In the short term, the DXY's movement will remain highly volatile, closely tied to Fed policy expectations and economic data releases. Its longer-term direction depends on the growth and interest rate differential outlook between the US and other major economies (particularly the Eurozone). The market is still pricing in the Fed's rate cut path, keeping the dollar's near-term direction uncertain.
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*Disclaimer: The above content is market analysis and does not constitute investment advice. Markets are risky; invest with caution.*
DXY4H Trading Outlook for the Upcoming Week
In this series of analyses, we review trading perspectives and short-term outlooks.
As can be seen, in each analysis there is a key support/resistance zone near the current price of the asset. The market’s reaction to—or breakout from—this zone will determine the next price movement toward the specified levels.
Important Note: The purpose of these trading outlooks is to highlight key levels ahead of the price and the market’s potential reactions to them. The analyses provided are by no means trading signals!
DXY Update📉 Outlook:
USD remains under pressure as weak August NFP (22K jobs vs. 75K expected) reinforces bets on a Fed rate cut in mid-September.
📊 Key Levels:
Support: 97.90 → 97.50 → 97.00
Resistance: 98.35 → 98.80 → 99.20
🎯 Scenarios:
Bearish: Break below 97.90 → 97.50–97.00
Bullish: Recovery above 98.35 → 98.80–99.20
⏱ Next Catalyst: US CPI (Sept 11) – a hotter print could trigger a USD rebound; soft data may extend the decline.
Summary: DXY in medium-term downtrend. Short-term price trapped near critical support. Watch CPI for the next directional move.
EDUCATION -HOW TO TRADE NFP
🔎 Current Chart Context (Sept 1–4)
Price rallied strongly from 97.60 → 98.60 on Sept 1 (likely institutional accumulation).
Since then, we’ve been in a range/consolidation:
Support zone: 97.90 – 98.00
Resistance zone: 98.55 – 98.65
Liquidity pools:
Buy-side liquidity above 98.65 (equal highs).
Sell-side liquidity below 97.90 (equal lows).
This is a perfect pre-NFP “box” setup.
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📌 Likely NFP Scenarios (Sept 5)
Based on technical footprints:
1. Liquidity Sweep to the Upside → Reversal Down (High Probability)
Price spikes above 98.65 resistance on the NFP release.
Retail traders chase the breakout.
Institutions sell into that liquidity.
Reversal targets 98.00 / 97.90 support (maybe deeper toward 97.70).
This would match the typical “NFP fake breakout” play.
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2. Liquidity Sweep to the Downside → Reversal Up (Alternative)
Price sweeps below 97.90 support first.
Sharp rejection back inside the box.
Real move then pushes back above 98.40–98.60.
This scenario requires a strong rejection wick — otherwise, a clean break of 97.90 means sellers fully take control.
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🔑 Technical Clue
Institutions already built longs from 97.60.
They might use NFP to take profit by running price above 98.65, then selling off.
If the spike and reversal play happens → expect USD weakness after the news.
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🎯 Trading Playbook for Tomorrow
1. Mark the range box: 97.90 (support) – 98.65 (resistance).
2. Wait for the first spike on NFP (don’t chase it).
3. If it sweeps liquidity (either side) and rejects sharply → trade the opposite direction.
4. Targets: opposite side of the box (98.65 → 97.90, or 97.90 → 98.65).
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✅ In short: Technically, todays NFP will likely grab stops above 98.65 first, then reverse lower toward 98.00/97.90. But always wait for confirmation — the first spike is usually the trap.
DXY: Strong Bullish Sentiment! Long!
My dear friends,
Today we will analyse DXY together☺️
The in-trend continuation seems likely as the current long-term trend appears to be strong, and price is holding above a key level of 97.952 So a bullish continuation seems plausible, targeting the next high. We should enter on confirmation, and place a stop-loss beyond the recent swing level.
❤️Sending you lots of Love and Hugs❤️
Dollar Index - Potential to break out + move to 100 still thereThe potential to break out of the trend and continue to the 100 area is still there.
What initially seemed like a rejection from the trend (pls see our comment on previously posted analysis: ), turned out to be a bigger consolidation on the trend line instead.
Furthermore, the consolidation (abc structure) looks like already over or over very soon.
Keep an eye for buy setups - there is a lot of pips from where price is now to 100.
Stay tuned.
US INDEX Decisive Moment for next Major MoveThe Dollar has had the bulls and the bears at battle for weeks at the current price action BUT its come to its breaking point where is has to elect a winner BULLS OR BEARS ?
Breaking it down thru each timeframe i believe 98.500 is what we have to break to confirm bullish Rally 103.000-105.000 next targets
On the other hand if we break 97.000 bears have taken over 95.000 next target zone
will look at US30 and EU along w other pairs to see if i can correlate anything
Break of dynamic resistance or rejection?It’s been a long time that this resistance has prevented the Dollar Index from reaching the 100 level, and the price has been making strong efforts to break through and establish itself above this zone. At the end of the week, we have a very important news release for the US dollar, so we need to see how the price reacts to this resistance in the coming days.
Dollar Index - back to 100Dollar Index headed back to the 100 area.
That's our forecast based on structure analysis.
If you didn't manage to get in yet, that is ok. The first move is never the first easiest setup to take. However, if the move will continue to 100, as we expect, it should at least give us another buy opportunity at the break of the trend. Anyways, the first move is gone now as the price has almost already moved the average amount of pips it usually moves on an average daily impulse.
Probably it will go a bit further to confirm the break today and then start consolidating for the next impulse.
Stay tuned for more updates as we'll try to post the next buy setup before it happens.
DXY – Big Week Ahead, Watch These Zones-Dollar still stuck in a range. No need to guess, just watch the heavy levels:
-96.66 = bullish liquidity zone
-99.80 = bearish liquidity zone
-This week is packed with heavy news:
-NFP Friday – jobs report could shake markets hard
-Fed credibility under fire – politics trying to pressure the central bank
-Be careful with dollar pairs — market makers love stop hunts around news.
Best to stay patient → let price show which zone breaks first.
The DXY chart for my EURUSD & EURFUTURES tradeCant see it all but theres a perfectly formed very long leg which is 200 bars long and 1000pips, then a perfectly formed 12hr ascending flag, 3 different trendlines which have even HH HLs on 2 of them, and lastly a 2hr support turned resistance entry at the 12hr flag retest after the breakout.
US job numbers this week. Keeping an eye on USD and US indicesWe are keeping a close eye on the US job numbers this week, as those fall into the Fed's spotlight. The expectations are low, so it would be interesting to see if the numbers can get even lower. Let's take a look.
MARKETSCOM:DOLLARINDEX
FX_IDC:EURUSD
Let us know what you think in the comments below.
Thank you.
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