Trade ideas
US Dollar Index (DXY) – Ending Diagonal Signals a Major Bullish The DXY is currently testing the upper boundary of a well-defined ending diagonal pattern on the daily timeframe — a structure that often appears at the end of a corrective phase, signaling the beginning of a new impulsive move.
After months of consolidation inside the narrowing wedge, momentum is now turning upward, suggesting a potential bullish breakout is underway. This diagonal likely marks the final wave of a corrective decline (Wave 5 of C) — meaning a larger bullish cycle could be ready to unfold.
Key Technical Notes:
🔹 Price is challenging the upper diagonal resistance near 99.00–99.40.
🔹 A confirmed daily close above this zone would invalidate the bearish wedge and trigger a trend reversal signal.
🔹 Next upside targets: 101.00, 103.50, and potentially 107.00 in extension.
🔹 Pullbacks toward 97.50–98.00 may offer buy-the-dip opportunities within the breakout structure.
Wave Context:
This move could represent the early stages of a new impulse (Wave 1 or Wave A) following the completion of an ending diagonal — a classic reversal signal in Elliott Wave theory.
Momentum Outlook:
Bullish divergence and a tightening structure suggest sellers are exhausted. A confirmed breakout would likely ignite short covering and renewed USD strength across the board.
Bias: ✅ Bullish / Long-biased — watching for breakout confirmation above 99.40.
Dollar Index (DXY) Rises to Highest Level in Over Two MonthsDollar Index (DXY) Rises to Highest Level in Over Two Months
The chart shows the Dollar Index (DXY) trading above the 99-point level today — its highest since early August. The dollar’s strength is supported by the weakening of other currencies:
→ The yen is weakening amid expectations of looser monetary policy. Conservative Sanae Takaichi could become the first female prime minister in Japan’s history, pursuing substantial spending and economic stimulus.
→ The euro remains under pressure amid France’s political crisis. Following the resignation of Prime Minister Sébastien Lecornu’s government, President Emmanuel Macron stated he plans to appoint a new prime minister this week.
Will the Dollar Index continue to rise?
Technical Analysis of the DXY Chart
On 19 September, we provided a significant analysis of the DXY chart in which we:
→ Confirmed the relevance of a descending channel (shown in red), which includes intermediate QL and QH lines dividing the channel into quarters.
→ Highlighted a reversal upward from the QL line (shown with an arrow).
→ Suggested a bullish scenario aiming to reach the QH line.
This scenario has indeed unfolded:
→ On 25 September and 6 October (as shown by arrows), the QH line acted as resistance.
→ On 7 October, it was broken upward, underlining bulls’ strength.
Given this, it is reasonable to suggest that bulls remain in control, while:
→ DXY fluctuations since mid-September’s low are forming an upward channel;
→ its upper boundary may act as resistance, potentially triggering a pullback towards the Support line;
→ the upper boundary of the red channel appears to be a key target for the current rally that began last month.
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DXY & XAUUSDThe U.S. Dollar Index (DXY) is moving within a long-term upward channel but has entered a downward trend since the beginning of 2025, while gold (XAU/USD) has surged sharply (from around the $2,600 level).
Apart from the large-scale gold purchases by the People’s Bank of China on **July 17, 2015**, which increased its reserves to about **1,658 tons**—roughly **600 tons more** than the previously reported figure in 2009—it seems to me that the bullish trend in gold might (at least temporarily, for a few weeks) pause **only when the U.S. Dollar Index breaks above its short-term downward trendline**.
However, for the U.S. dollar to fully reverse its current downtrend, it would need to break above the **100.3 and 102** levels.
DXY Implusive Bullish Trend - Longter OutlookThe U.S. Dollar Index (DXY) appears to have completed a major A–B–C corrective supercycle that started in the mid-1980s, with wave C bottoming around 2008. Since then, the index has been forming a new impulsive structure (1–5) within a long-term ascending channel.
Currently, DXY seems to be developing wave (E) of sub-wave iii, which could mark a short-term top before entering a corrective wave iv phase near the 103–108 region. Once that correction completes, the next bullish leg — wave v — is projected to extend toward the 130–165 zone, signaling the potential start of a new bullish supercycle for the USD.
The parallel channel structure and long-term EMA support reinforce this view that recent weakness is corrective rather than a trend reversal, keeping the long-term outlook firmly impulsively bullish for the dollar.
U.S. Dollar Index: Wave C Downtrend Targeting New LowsTVC:DXY CAPITALCOM:DXY
📉 U.S. Dollar Index (DXY) – Wave C in Progress
The DXY remains in a corrective phase after completing Wave B₂.
A clear A–B–C structure is unfolding, with the current move forming the final Wave C.
The recent flag pattern (A–B–C–D–E) suggests a potential continuation to the downside.
A break below 98.86 would confirm the start of Wave 5 of C, targeting the 95.4 → 94.3 support zone.
Elliott Wave Overview:
Wave A: completed
Wave B₂: expanded flat
Wave C: unfolding with 1–4 structure complete
Key Levels:
🔹 Resistance: 99.75
🔹 Confirmation Sell: 98.86
🔹 Targets: 96-95-94-93
Bias remains bearish while price trades below 99.75.
$DXY at a key level: the dollar could reclaim its role as a safeTVC:DXY is currently at a key level.
Historically, when markets enter a phase of euphoria and everything rises simultaneously — TVC:SPX equities, TVC:GOLD gold, CRYPTO:BTCUSD crypto — the dollar tends to reassert itself as a safe-haven asset.
With major indices and technical indicators showing overbought conditions, and employment data beginning to weaken, a flight to safety into TVC:DXY over the coming months wouldn’t be surprising.
Moreover, the rate spread between the U.S. and Europe remains wide: the TVC:US10Y 10-year Treasury hovers around 4.3%, while the TVC:DE10Y German Bund stays near 2.3%.
This gap continues to attract capital flows toward dollar-denominated assets, reinforcing the greenback’s appeal even amid expectations of moderate rate cuts in 2025.
In our view, it’s worth holding liquidity and/or equivalents over the next few years to seize potential opportunities from a market crash or sell-off should the FED be forced to cut rates in the current environment of economic slowdown.
This is a quick follow up from early this morningI was freaking out over the pattern and the dxy and then it occurred to me that every time I do a trade and I want to get out of it... I basically get back into the dollar by default.... And that may be the reason the dollar is doing so badly is that there are a group of sharp traders exiting the gold and silver because they may understand that there is a reversal pattern and that they should liquidate their position in the gold and silver contracts...... This is clearly hypothetical in any case... I think there is value to the video that I did this morning and I hope that you take a look at it.
DXY: Will Go Down! Short!
My dear friends,
Today we will analyse DXY together☺️
The recent price action suggests a shift in mid-term momentum. A break below the current local range around 98.437 will confirm the new direction downwards with the target being the next key level of 98.260 and a reconvened placement of a stop-loss beyond the range.
❤️Sending you lots of Love and Hugs❤️
DXY ready to continue lower, buy EURUSD and coDxy has taken liquidity Buyside liquidity and it is now ready to continue lower. I was bullish till this point, I've now turned bearish.
There are many reason for this analysis, 3 drive pattern, buyside liquidity purge, 4hrs BOS with displacement
TP 1 @ 98.1
TP 2 @ 97.45
TP 3 @ 96.2
Trade accordingly
Dxy will still turn bullish, I will update you then... Enjoy
US Dollar: Wait For The +BOS, Then Buy It!Welcome back to the Weekly Forex Forecast for the week of Oct 6 - 10th.
In this video, we will analyze the following FX market: USD Dollar
The USD is technically still bearish, trying to find support for higher prices. A US government shutdown is not helping that case! However, personally, I am still looking toward the upside.
Price is still holding at a bullish discount array, an +OB. As long as the +OB is respected, I am looking for higher prices.
A bearish BOS will make looking for higher prices invalid.
So, let the market show its bias before entering a trade. Look for the confirmations to its direction.
Don't take trades inside the middle of consolidations!
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:
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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 – The Road to 100 Looks ClearIn my previous analysis on DXY, I mentioned that as long as the 97.60 zone holds, there are strong chances for an upside move and a possible test of the 100 level.
Indeed, the index reversed perfectly from that support area and has now broken above the interim resistance around 98.60, trading close to 99 at the time of writing.
Over the last three sessions, DXY has also completed an inverted Head & Shoulders pattern, with the neckline breakout confirming the bullish structure.
From here, the path toward the 100 zone appears clear and technically justified.
I maintain a bullish bias for the U.S. Dollar Index, which naturally implies a bearish outlook for EURUSD and GBPUSD in the short term.
DXY Target Achieved | Smart Money Model #1 Playing Out PerfectlyHello Billionaires!!
In DXY D1 Projection we know the bullish projection on DXY played out exactly as expected.
Price swept the short-term sell-side liquidity (SSL), filled the IFVG, and then launched upward through the FVG, completing the Model #1 structure.
Currently, price is trading inside the BPR (Balanced Price Range), showing that the target zone has been successfully reached.
🧠 Smart Money Logic:
SSL sweep → Market Structure Shift
IFVG + FVG = Strong Reaccumulation
Price delivered to BPR (Premium Zone)
Model #1 completion confirms bullish delivery
Now I’ll be watching for potential reaction or retracement from this premium zone before the next move develops.
#DXY #SmartMoneyConcepts #PriceAction #ICT #Forex #Liquidity #BPR #FVG #IFVG






















