US Dollar: Bearish! Buyside LQ Sweep Before Rate Cut?Welcome back to the Weekly Forex Forecast for the week of Sept 15 - 19th.
In this video, we will analyze the following FX market: USD Dollar
The USD has a .25 basis point rate cut coming Wednesday. Will there be a manipulation of the buy side liquidity before prices turn downward? I am looking out for this fake out maneuver by MMs, being mindful the rate cut will weaken the USD against its counterparts. A short term move higher before the market turns bearish with the news announcements is more then possible.
Wait and react. Do not predict.
React and do not predict.
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USD Rate Cut Rally - X Marks the SpotThe Fed cut rates while warning of another 50 bps of softening for this year and another 25 for next year. Yet the USD has rallied since just after the release of the rate cut announcement with strength holding into the end of the week.
This is quite similar to last year's rate cut cycle starting from the FOMC. At that meeting, the USD initially pushed down to a fresh low - and that's when sellers started to stall. It took another week and a half or so but soon bulls took over with aggression and ran a strong rally through Q4 trade.
This also led to higher US yields, with both the 10 and 30-year setting a low yield watermark just a day ahead of the rate cut. But, as the cut and continued to cut in Q4, US yields just went higher and higher, with the 10-year eventually tagging 4.8% in the first few weeks of 2025 (after a pre-cut low of 3.6%) and the 30-year hitting 5% (after a pre-cut low of 3.9%).
This may seem counter-intuitive, as the Fed softening rates led to higher long-term rates, but if the Fed is cutting rates with inflation already high, this is something that can happen. Long-term inflation expectations moving higher makes the prospect of sitting long in long bonds as a less attractive prospect. And there's also the opportunity cost element, why settle for a 3.9% year-over-year return if inflation is expected at 3% or maybe even more; meanwhile stock prices are rallying on the back of a softer Fed even with a backdrop of high inflation.
While last year's rate cut marked a significant low for DXY, there's potential for a repeat occurrence. We're still in the early stages of the move and the Fed sounded just a little less dovish than what markets were hoping for, by reining in expectations for 50-75 bps in cuts next year. But given just how stretched USD bears have been, any further motive towards fewer FOMC cuts could lead to a stronger USD.
For next week, the big focus is on EUR/USD supports which remain in-play, and those keep bulls in the conversation until they're traded through. And with the Euro as 57.6% of the DXY quote, that's an extremely important factor for USD trends as we near the Q4 open. - js
DXY is setting for another dropPre FOMC move on DXY bearish as with 0.25% to 0.5% rate cut decision as significantly impacted dollar index which on press conference, price finally rejected from the lower level 96.20
As with the weekly close coming in few hours, price approaching another key level of resistance, weekly and monthly giving a high probablity to reject back again to the support level as the resistance consist of 3 higher timeframe confulences, monty and weekly resistance alogn with weekly 10ema combining with break of series of lower highs and break of the combinations could lead the price to drop to the support. at 96.20
What Was Important for the US Dollar Index (DXY) This WeekWhat Was Important for the US Dollar Index (DXY) This Week
The long-awaited event — the Fed’s first rate cut of 2025 — has taken place. What is particularly important to note is the price action on the US Dollar Index (DXY) chart.
The value of the USD against a basket of other currencies made a two-step move, forming a pin-bar candle with a long lower shadow:
→ Arrow 1: When the Fed actually announced the easing, the dollar weakened as expected on this “dovish news.”
→ Arrow 2: But at the subsequent press conference, Fed Chair Jerome Powell delivered a series of “hawkish” remarks that shifted the market mood and drove the dollar higher. He stressed that this cut does not mark the beginning of “a series of continuous rate reductions,” and that further decisions will be taken “based on incoming economic data.”
Powell also stated plainly that the option of a more aggressive 50-basis-point cut had not gained sufficient support among FOMC members. Therefore, the “down-then-up” move highlights a sharp change in trader sentiment within a short timeframe, as expectations failed to materialise.
Technical Analysis of the DXY Chart
In our 9 September analysis, we confirmed the relevance of:
→ the descending channel (shown in red) defined by a sequence of lower highs and lower lows;
→ the intermediate QL and QH lines, which divide the channel into quarters.
Notably, at Wednesday’s low the price:
→ touched the QL line, underscoring its strength;
→ formed a clear Liquidity Grab pattern (in the terminology of the Smart Money Concept methodology).
From the perspective of Richard Wyckoff’s method, Wednesday’s low may be viewed as a Spring pattern, which preceded a Mark-Up phase of rising prices.
How Might Events Unfold Next?
Given the above, we could assume that the hawkish tone could serve as a longer-term factor for the DXY index. The 97.55 level appears to act as resistance, but it is possible that we may see an attempt to break through it, with the next target being the QH line.
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Dollar - Daily Range I Liqudity I Key Level - ShortDollar has reached key level after whipsaw move on FOMC. It also grabbed liqudity and COT is still bearish while HTF Key Level on lower prices. Hence I think new low is in play.
Trading is like a sport. If you consistently practice you can learn it.
“Adapt what is useful. Reject whats useless and add whats is specifically yours.”
David Perk aka Dave FX Hunter
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DXY 4H – Bullish Reversal Setup from FVG Zone | Target 98.63Technical Analysis
Downtrend Channel (Bearish Structure)
Price has been moving inside a descending channel (highlighted in red).
Recently, it touched the lower boundary and formed a rounded bottom pattern (possible reversal signal).
Trendline Breakout
A short-term downtrend line has been broken to the upside.
This suggests momentum is shifting from bearish to bullish.
Fair Value Gap (FVG Zone)
Price is currently testing an FVG zone around 97.00–97.28.
This zone acts as a potential entry area for long trades.
Entry, Stop Loss, and Target
Entry Point: 97.28 – 97.27
Stop Loss: 96.90 (below FVG zone support)
Target Point: 98.63
Risk–Reward Ratio: Approximately 1:3 → good setup.
Potential Scenario
If price holds above the FVG zone and doesn’t break below 96.90, we may see a bullish move toward 98.63.
But if the FVG fails and price closes below 96.90, it could resume the downtrend.
✅ Summary:
Market structure shows a possible bullish reversal after a prolonged downtrend.
A clean long setup is planned: Buy near 97.27 → Stop 96.90 → Target 98.63.
Confirmation needed: Strong bullish candle closing above the FVG zone
Dollar Weekly WrapThe dollar ripped to fresh lows early in the week on the FOMC spark and is now set to close with a heavy bearish rejection candle.
Next week’s macro stack:
Tue – U.S. PMI flash
Thu – Q2 GDP final and Durable Goods
Fri – Personal Income/Spending and PCE
Price sits just below a five-week liquidity shelf around the 98.00 area.
Technically the market is oversold near the lower range, so high probability to target next week 98ich highs and lower on cross pairs. lets see how it will play out!
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/GOLD/RATESDXY is sitting at a key monthly support.
Gold is getting extremely hot.
is it time for a flip? majority sentiment feels like gold is going up forever (i agree to an extent, but im not against some pullback/higher lows first)
FED mentioned inflation was a bit sticky.
sharing purely to see how she ages
GOLD = red
DXY = BLUE/BLACK
DXY: The Market Is Looking 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 96.755 will confirm the new direction downwards with the target being the next key level of 96.629 and a reconvened placement of a stop-loss beyond the range.
❤️Sending you lots of Love and Hugs❤️
The dollar making fresh yearly lows for the FedThe dollar making fresh yearly lows yesterday for the Fed decision. 95 looks close. At some point the dollar will be on sale. Last time Trump was elected the dollar went on sale in early 2018 after a year of selling off. Will the dollar be on sale next year?
Bearish reversal off pullback resistanceUS Dollar Index (DXY) is rising towards the pivot which acts as a pullback resistance and could reverse to the 1st support.
Pivot: 97.36
1st Support: 96.47
1st Resistance: 98.12
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DXYDXY maintains a bearish bias, trading below last week’s open and confirming weakness with a series of lower highs and lower lows. Commitment of Traders (COT) data shows non-commercial traders reducing long positions and adding to shorts, reinforcing the downside outlook. As long as price holds beneath the current week open, bearish momentum is expected to persist, with any rallies into resistance or supply zones offering opportunities to align with the prevailing trend.
Dollar Index (DXY) – Pre-FOMC Rangebound PlayPrice is boxed between 96.20 and 96.40 as market makers build volume on both sides ahead of the Fed.
Key Levels
• 96.40 – top of the current node, first spot for squeeze fuel.
• 96.20 – base of the range, stop pockets just beneath.
Until the statement drops, expect tight, whipsaw action—classic pre-FOMC positioning. Patience over prediction.