USXUSD trade ideas
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.
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Dollar Bloodbath = Risk On Assets Rally?Dollar Fundamentals:
The dollar posted modest gains on Friday due to higher T-note yields, which have strengthened the dollar’s interest rate differentials.
The University of Michigan US Sep consumer sentiment index fell more than expected to a 4-month low causing the weakening of the dollar.
Limiting the upside in the dollar are the increased expectations for Fed easing through year-end. The dollar is also being undercut by concerns over Fed independence, which could prompt foreign investors to dump dollar assets as President Trump attempts to fire Fed Governor Cook, and by Stephen Miran’s intention to be a Fed Governor.
What Can We Expect Going Forward?
- Due To High Resistance Over Multiple Weeks, There Will Be Massive Levels Volatility, Aiming To Trap The Retail Traders
- Next Week Wednesday Will Determine How Volatile Dollar Will Be. Anything More Than A .25 Basis Point Decline Will Cause Turmoil For Dollar.
- This Will Lead Risk-On Assets (e.g. GBPUSD, EURUSD, AUDUSD) Rallying Up Into Premium Arrays
Prices To Keep An Eye On:
- 99.078 (Last Line Of Defence)
- 96.377 Major Sellside Liquidity
- Medium-Term Draw To 95.716 - 94.313 HTF Array
GBPUSD
Fundamentals :
UK gross domestic product remained unchanged in July after growing 0.4% in June, the Office for National Statistics said, as manufacturing output, which makes up 9% of the economy, dropped by 1.3% on the month.
The BoE is widely expected to keep its benchmark Bank Rate unchanged on September 18, after a split decision to lower the rate to 4% in August.
What To Expect Going Into Next Week?
- Increased Volatility
- Trigger HTF Stop Losses
- Unusually High Levels Of Manipulation
Price Points To Keep A Eye On:
- 1.35950 Buyside Liquidity
- 1.36760 - 1.37036 Longer Term Premium Array
- 1.34458 Mean Threshold (Last Line Of Defence)
Dollar Index Holding Up But GBPUSD Might Change That...Dollar = Relative Game, Not Absolute
Dollar Index isn’t just the USD — it’s USD vs a basket (mainly EUR, JPY, GBP).
If the Fed cuts but ECB, BOE, and BOJ are also leaning dovish, the relative advantage doesn’t change; USD stays steady.
The dollar has been consolidating because macro signals are mixed (Fed easing vs US resilience, inflation uncertainty, global growth divergence), and the euro/yen/GBP balance out.
The market is waiting for a clear catalyst — usually a Fed decision, inflation report, or geopolitical shock to break the range.
US DOLLAR War Map stays simple right nowThe dollar’s been sliding for months, but we finally saw the range lows taken out after the FOMC spike, and that sets up the next move.
Here’s how I’m reading it:
Rotation lower is still the logical path unless politics or surprise news change the game.
On the DXY chart, I’m watching for a heavy-volume node to act as a target for a short-term pullback higher.
For cross-pairs, that means I’ll look for short setups while using the recent bullish dollar lows as day-to-day reference points.
Key level to watch: around 98.7, where heavy bearish order-flow has been building.
If the market keeps moving, it’s a straightforward trade plan: stay positive, take intraday signals, and let the bigger down-cycle play out.
MY VIEW ON THE DXY - 22 / 26 SEPTEMBER 2025Last week we saw the Index testing a new low, continuing its downward trend, cause by the Feds cutting interest rates.
On the major frames the Index is in fact bearish unless we have a clear move above 101.400.
This week I expect a pullback to the 98.300 - 98.750 critical area of resistance by Tuesday, Powell speech could push the index up to 101.050 - 101.350 or down to new lows in the 96.000 - 95.220 area of support.
dxy 4hTrading Perspectives for the Upcoming Week
In this series of analyses, we have reviewed short-term trading perspectives and outlooks.
As can be seen, in each analysis there is a significant support/resistance zone near the current asset price. The market’s reaction to or break of this level will determine the future price trend up to the next specified levels.
Important Note: The purpose of these trading perspectives is to examine key price levels and the market’s potential reactions to them. The analyses provided are by no means trading signals!
DXY Weekly Fundamental factors: The US domestic economy and the imposition of additional tariffs on consumer goods from China and Russia, as well as the confidence building of global opinion that the US will not start a war, all of these factors can help the index grow.
Technical factors: The oversold situation and the gap between the Keysin and Tensin lines increased, as a result, there is a possibility of price growth.
Head and Shoulders Pattern on U.S. Dollar Index (DXY) – Bearish Overview of the Idea (as shown in the chart)
The chart illustrates a Head and Shoulders (H&S) reversal pattern forming on the U.S. Dollar Index (DXY). This classical technical pattern signals a potential trend reversal from bullish to bearish.
Left Shoulder: The first peak followed by a pullback.
Head: A higher peak, forming the top of the pattern.
Right Shoulder: A lower peak compared to the head, roughly equal to the left shoulder.
Neckline: A support line connecting the lows between the shoulders. Once broken, it indicates potential bearish continuation.
The chart highlights:
A breakout below the neckline.
A retest of the neckline (common in H&S setups, where old support becomes resistance).
A projected downside target aligned with the height of the head-to-neckline move.
Detailed Analysis
1. Pattern Identification
The H&S is clear: higher high (Head) flanked by two lower highs (Shoulders).
The neckline is slightly ascending, but once broken, it signals sellers stepping in.
2. Breakout Confirmation
Price broke below the neckline, confirming the bearish pattern.
The retest at ~97.62 shows rejection, strengthening the bearish outlook.
3. Bearish Projection
Technical rule: the expected downside target is approximately equal to the distance from the head to the neckline, projected downwards from the breakout point.
The chart projects a move toward 97.25, which aligns with the marked support zone.
Timing
The projection points to Monday, 15/09/25, suggesting this bearish move may unfold in the upcoming trading sessions.
Walkthrough Thought Process
Think of the market like a battle between buyers and sellers:
The buyers pushed price higher (Head), but then failed to sustain strength at the right shoulder.
When price breaks the neckline, it shows sellers are gaining control.
The retest confirms that what was once support (neckline) has now become resistance.
This setup gives traders confidence to enter a short (sell) trade, targeting the projected downside.
Trade Idea
Entry : After retest rejection around 97.62.
Target (TP) : 97.25 (support zone based on H&S projection).
Stop Loss (SL) : Above the right shoulder at 97.80 (to protect if pattern fails).
Dollar index downtrend continuationOn the daily timeframe, we could observed a downtrend movement impact of the NFP news.
The market then, made a healthy retracement.
When will this retracement end?
Lets zoom-in in a lower timeframe.
This chart is m30. We could observed a complete H&S pattern hint for down movement is about to start.
I believed it can go further down but lets aim as what H&S pattern suggest,
Distance from 'Head' to 'Neckline'= Distance from 'Neckline' to 'Target'.
This is analysis is for my future reference.
If you want to follow, make sure calculate your own risk & reward.
This analysis will have corelation with other currencies:-
USDXXX : Down trend
XXXUSD : Up trend
Good Luck
Bearish reversal off 61.8% Fibonacci resistance?The US Dollar Index (DXY) is rising towards the pivot which aligns with the 61.8% Fibonacci retracement, and could reverse to the 1st support.
Pivot: 98.11
1st Support: 97.36
1st Resistance: 98.47
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