DXY 4HTrading Outlooks for the Week Ahead
In this series of analyses, we review short-term trading outlooks and perspectives.
As can be seen, in each analysis there is a key support/resistance zone close to the current price of the asset. The market’s reaction to or breakout from these levels will determine the next price movement toward the specified targets.
Important Note: The purpose of these trading outlooks is to highlight critical price levels ahead and the market’s potential reactions to them. The analyses provided are by no means trading signals!
DXY trade ideas
WILL THE BEARS CONTINUE TO BREAK THE BULLS' BACKS ???DXY ANALYSIS (Daily Timeframe).
On the 1st of July 2025 price began printing a sideways correction, wherein minute wave (a) terminated on the 1st of August 2025. Price is currently printing a minute wave (b) before a minute wave (c) to complete minor wave 4. Minute wave (c) may not take out the 100.257 levels due to the strength of the Bears.
Looking at higher times, weekly and monthly. We see that price created a long term bullish support. We have seen the first several touches of the support line between the 28th of April 2011 and the 29th of August 2011, a total of 10 touches. We have also seen the second touches on the trendline between the 6th of January 2021 and 7nth of May 2021, about 12 touches. We are currently witnessing the third touches on the trendline. Price has already touched once the trendline on the 30th of June 2025. We are still expecting more touches and a breakthrough into the trendline. Should bulls remain weak, we will see price retest and breakaway from the trendline.
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USD Index Technical Outlook – Key Buy & Sell LevelsThe U.S. Dollar Index (DXY) is currently trading inside a clear downward channel, showing a bearish market structure. Price is hovering near 98.23, just below the key resistance zone between 98.5 – 99.2, where Fibonacci retracement levels (0.382, 0.5, and 0.618) also align, making it a strong supply area. As long as price remains below this zone, the bias stays bearish, with potential downside targets at 97.5 and then 96.5, in line with the channel support and Fibonacci extensions. However, if buyers manage to push above 99.2, it would signal a possible trend reversal and shift the outlook towards bullish continuation. Overall, the structure suggests that the U.S. Dollar Index is more likely to face rejection near resistance and continue lower in the short term.
🔴 Sell Zone (Short Setup)
- 98.50 – 99.20 is a strong resistance area where price aligns with the Fibonacci retracement (0.382 – 0.618) and the upper channel trendline.
- Sell Trigger: If price shows rejection (bearish candles, wicks, or reversal patterns) within this zone.
🟢 Buy Zone (Long Setup)
- 97.50 – 96.50 area is the channel support and also near Fibonacci extension levels.
- Buy Trigger: Look for bullish confirmation (bounce, bullish engulfing, or rejection wicks).
Note
Please risk management in trading is a Key so use your money accordingly. If you like the idea then please like and boost. Thank you and Good Luck!
BEARISH CONTINUATION FOR DXYBearish Bias for CAPITALCOM:DXY
Weekly context:
The last up-move failed to print a new weekly high. Failing to create a shift in structure , so rallies are suspect.
4H structure:
We had a hard bearish displacement (large down candles) that erased prior price action and kept going without delivering a “full” rebalance. That usually means the price target remains lower .
The key zones on chart
Breaker / sell zone: \~ 97.45–97.75 (teal box). This is the prior bullish OB that failed (now acting as resistance).
Line in the sand: \~ 97.35–97.40 (dashed line through the teal). A decisive 4H close below here signals continuation.
Upside cap / invalidation area: 98.12 (cyan line) up to \~ 98.20 . Above this, the bearish sentiment weakens.
Primary downside draw: 96.478 (orange line). That’s the next obvious liquidity/inefficiency magnet on your chart.
Trade plan
Idea A — Rejection short from the breaker (preferred):
Entry: look for a rejection setup inside 97.45–97.75 (e.g., 15m/1h bearish shift after a sweep).
Stop: above the breaker and the cyan line ⇒ 98.12 (conservative) or 98.20 (safer).
Targets:
T1: 96.84 (take partials; pay yourself)
T2: 96.47.00
Idea B — Continuation after the break (confirmation play):
Trigger: a 4H close below \~97.35 .
Entry: sell the first clean pullback into 97.35–97.45 .
Stop: above 97.85–98.00 (back inside the breaker); conservative stop 98.12 .
Target: 96.478
Management & invalidation
If price rebalances deeper and closes 4H above 98.12–98.20 , the breaker is failing. Flatten shorts; reassess (potential squeeze toward 98.60–99.00 is then on deck).
If price hesitates at 97.00 , trail above the last 1H swing high to protect realized PnL while aiming for 96.478 .
News risk: Your chart flags upcoming US data (icons). Expect wicks; use hard stops and consider sizing down around releases.
Why this makes sense
* The strong displacement leg sets the draw lower.
* The teal box is a bearish breaker created by a failed bullish structure—ideal for “sell on rally.”
* The market rebalanced the prior up-close leg already; the lack of a symmetrical rebalance on the down-leg favors continuation to the next target ( 96.478 ).
One-liner: Bearish while 4H stays under 98.12 ; sell rallies into 97.45–97.75 or sell a 4H close-and-pullback below 97.35 ; scale out 97.20 → 97.00 → 96.80 → 96.478 ; hard stop above 98.12–98.20 .
*Not financial advice. Size appropriately and stick to your stop.*
PLEASE PUA!
DXY - My Detailed Bull Thesis Going ForwardDear Friends in Trading,
How I see it on a 12HR Time Frame.
(To follow my findings so should you)
RSI:
4HR = above 50% - 14sma supported
12HR = just below but right at 50% - 14sma supported
SUPPORT:
The purple line represents a multi layered support area created by HUGE demand.
It is the THRESHOLD of institutions and surely the US Government.
I have indicated the multiple "demand" rejections - UP in recent history.
BACK TEST: (Please see for yourself how price reacted from this support)
1st of MARCH 2022 - 31st of March 2022
Yes, that is the previous time price was where it's at now.
1) 1st of March just below support line, there is a FVG formed.
2) I have drawn this FVG all the way to today - LIGHT BLUE
3) Then look how what price reacted above the purple line once it breached the confluence.
MY SUMMARY:
For 3 and a half years that FVG have been accumulating demand to hold the INDEX UPWARD.
Price can definitely dip into BLUE FVG to muster a "REVERSAL SHOT/BOUNCE" out of the hole.
Price can also just do a "BOUNCE" reversal from the current support and rally to compensate for the pending rate cut later this month.
I sincerely hope my point of view offers a valued insight.
Thank you for taking the time study my analysis.
Bearish momentum to extend?The US Dollar Index (DXY) has rejected off the pivot and could drop to the 1st support.
Pivot: 98.63
1st Support: 97.12
1st Resistance: 100.21
Disclaimer:
The above opinions given constitute general market commentary, and do not constitute the opinion or advice of IC Markets or any form of personal or investment advice.
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USD, DXY Monthly - X Marks the SpotThe US Dollar is near the mid-point of the 20-year range but for the past few months, the currency has been tangling with long-term trendlines that haven't yet shown a willingness of giving way.
The upper trendline originates in 2001 and connects to the 2020 high. This caught the low in 2023 and then again in April. Shorter-term, the weekly chart of DXY has been taking a seat on this trendline with sellers unable to yet leave it behind.
The support trendline originates in 2011 and connects to the 2021 low. This caught the low around the Q3 open and hasn't been back in play since. But - as we move towards the FOMC rate decision next week this is a big level to watch.
With the Fed widely expected to cut rates, the bigger question and likely bigger driver from next week's meeting will likely come from the bank's dot plot matrix, and if the Fed does lean towards the 125-150 bps of rate cuts that are expected into the end of next year, USD bears could finally get a shot-in-the-arm. Perhaps a bigger question behind that is whether EUR/USD can finally take on strength after the pair has stalled for the past two and a half months. - js
WILL THE BEARS CONTINUE TO BREAK THE BULLS' BACKS ???DXY ANALYSIS (Weekly Timeframe) (Chart 2)
Looking at higher times, weekly and monthly. We see that price created a long-term bullish support. We have seen the first several touches of the support line between the 28th of April 2011 and the 29th of August 2011, a total of 10 touches. We have also seen the second touches on the trendline between the 6th of January 2021 and 7nth of May 2021, about 12 touches. We are currently witnessing the third touches on the trendline. Price has already touched once the trendline on the 30th of June 2025. We are still expecting more touches and a breakthrough into the trendline. Should bulls remain weak, we will see price retest and breakaway from the trendline.
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LIQUIDITY SWEEP ON DXY BEFORE FALLINGIn this weekend dollar index analysis presentation, my thesis is sideways liquidity sweep before a daily bear flag breakout to the downside. Momentum and RSI on the higher timeframe are still to downside suggesting more selling. Price is still trapped below all our moving averages confirming our trend bias. On the weekly time frame we have a couple of inverted candles at a fib 0.618 support zone suggesting a likely reversal from a higher low but I think these inverted candles are liquidity sweeps from the 0.382 fib retrace resistance level. The daily chart has a strong shooting star which initiated selling pressure to the current trendline support level at 97.432 where our last daily candle was a doji indecision or pause.
In the coming first trading week of September, I will be watching for clear break of the trendline on the daily chart and a confirmed breakout of the fib 0.618 support zone at 97.187 for an initial target of 96.702 and final target of 96.155.
Thank you and have a great profitable trading new month. Cheers!!
LIQUIDITY GAMES: DOLLAR HOLDS THE LINE WHILE CRYPTO SURGESWe head into a heavy news flow week with CPI Thursday and the FOMC next Wednesday. It’s easy to expect continuation of bearish economic data — but don’t think for a second that news alone will simply make price drop.
The dollar has been holding and absorbing both sides of the market for the past month. This kind of structure often creates the opposite effect of what headlines suggest. While traders lean bearish, the dollar could easily run higher into mid-range before rolling over.
We’ve seen this pattern before — gold rush movements and Bitcoin rallies that unfold without the dollar moving. It’s planned this way, building liquidity by trapping both sides.
From a CORE5 perspective:
– Structure → BTC is pressing toward the 124K liquidity zone, while DXY consolidates in balance.
– Dynamic Symmetry → rallies and pullbacks are aligned; watch for rotation if dollar squeezes higher.
– Volume & Order Flow → Bitcoin flows remain elevated, but sustainability hinges on post-CPI reactions.
– Confluence → Risk pairs remain vulnerable if DXY snaps higher, despite crypto’s relief bid.
Beaware - In weeks like this, price action around news is designed to confuse. Stay focused on structure and confluence, not headlines.
Trading is only fun when you’re on the winning side — guessing usually lands you on the other
Implausible until it's not? Zoom out $DXY.On the high time frames, the dollar is trading inside a long-term descending channel that dates back decades. The rally into a rising channel has been previously followed by a decline 2002-2008. The most recent rejection from the channel’s upper trend in 2022–2023 suggests that momentum could shift toward the downside, with our next macro target lying near the bottom of the range. We've already broken below our major whole of 1.00 and retested.
Recent NFP data shows a cooling labor market. Slowing job growth and downward revisions might point to a break in momentum. A softer labor market reduces the Fed’s ability to maintain higher rates, undermining DXY strength. Beyond employment, consumer spending is showing cracks while business investment is being pressured by higher borrowing costs. If growth becomes stagnant, the immediate appeal of the economy could weaken, reducing foreign capital that support the dollar. Other factors may include tariffs, policy shifts, or deficits.
When both macro fundamentals and technical structure align, the case for a dollar decline strengthens. While near-term volatility is always expected around Fed shifts and global risk, the high-time-frame view points to the possibility of a downtrend that could extend into the months or possibly years to come.
Eyes peeled for an inverse crypto-winter.
DXY: Key Levels + Change of CharacterBias: Long
Type: Reversal Trade
Trend: Range
Area of Value : Key Levels from downtrend before change of character.
Momentum : 1D MACD Histogram about to cross the High Tide.
Entry: 97.691
Exit: Stop Loss @ 96.890; Take Profit @ 100.894.
Analysis
Fact 1: DXY since 2022 has stayed above the 100.890 support level trending as a range.
Fact 2: DXY has now crossed the key support level @ 100.890 which now acts as a resistance
Fact 3: DXY crossed the trend line signaling a change of character + DXY MACD Histogram is about to cross to High Tide also signaling a change of character.
Conclusion:
Since the key support level @ 100.890 has now been broken, and there is a change of character about to happen. I believe that DXY will at the very least reach the resistance level @ 100.890 before bouncing off to continue the down trend or break to re-enter the range.
Recommendation:
Long Entry on the Area of Value (97.691), for stop loss add 1D ATR for distance (96.890), for take profit let it be the key resistance level (100.894). R:R of 4
DXY Head and Shoulders Retest H4Change of bias on DXY - if the current bounce of price in support is a retest of this H&S pattern then we may see prices fall to the 94 - 95 region.
NB: the upward-facing arrow is just a rough estimation of the retest target. Prices may fall from a much lower level than that.
DXY: Target Is 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 97.216 will confirm the new direction downwards with the target being the next key level of 97.160 and a reconvened placement of a stop-loss beyond the range.
❤️Sending you lots of Love and Hugs❤️
DXY Correction to the UpsideThe much-anticipated pullback to the upside has started.
Remember, even though the overall trend is still bearish as seen by the bigger picture Head and Shoulders pattern I mapped out on H4 TF, we still projected this upside move as a retest of that main pattern.
Confirmations to long as seen on the H1 TF are this inverted Head and Shoulders and a break out and retest of the falling wedge.
Apply correlation to your dollar pairs and Gold.
DXY – Potential Bullish Bias: Daily Fakeout & H4 ReversalThe Dollar Index (DXY) is showing signs of a possible bullish reversal.
On the Daily timeframe, price has swept below support and is now indicating a potential fakeout. This often signals trapped sellers and can provide fuel for a bullish recovery if price reclaims above the broken level.
On the H4 timeframe, I see a V-shape continuation pattern forming. Price has also made multiple retests in the same zone, showing strong buying interest. This confluence strengthens the bullish bias.
For execution, I will wait for a clear reversal signal on H4 (such as a strong bullish engulfing candle or momentum break) before confirming the entry. If the reversal holds, the next upside targets could align with the Fib extension levels (1.618, 2.618, and 3.618).
Risk management remains key – if price fails to hold the fakeout level, then the bearish trend may still continue.
Disclaimer: This is not financial advice or a trade call. Analysis shared here is for educational purposes only. Please manage your own risk accordingly.
DXY ready to resume downtrend!97.94 Level on DXY is a high liquidity zone as in the falling market there is bounce off to 97.937. Price grabbed liquidity and started to drop again to the major direction of the trend. As it is a long term down trend and price just rejected from a high liquidity zone, it is a high probability price may continue to drop to this support level as multiple timeframe trend is bearish.
US Dollar Index Drops to 7-Week Low Ahead of Key Inflation DataUS Dollar Index (DXY) Drops to 7-Week Low Ahead of Key Inflation Data
As the US Dollar Index (DXY) chart shows, the value of the USD against a basket of other currencies has fallen below 97.30 – its lowest level since late July.
The reasons lie in market sentiment ahead of major data releases:
→ On Wednesday at 15:30 GMT+3, Producer Price Index (PPI) figures will be published; a month ago they came in extremely high.
→ On Thursday at 15:30 GMT+3, Consumer Price Index (CPI) figures are due.
These releases are particularly significant as next week the Federal Reserve is set to announce its decision on interest rates – a 25-basis-point cut is widely expected.
Technical Analysis of the DXY Chart
On 18 August, we identified a descending channel (shown in red) based on a sequence of lower highs and lower lows → it remains valid.
In addition, our base scenario suggested that the index might test one of the quartile lines (QL and/or QH) dividing the channel → indeed, since then the QH line has been tested several times (red arrow), convincingly acting as resistance.
What Next?
Bearish case:
→ Lower highs and lows throughout the second half of August indicate that sellers are in control of the DXY market.
→ The black arrow marks bearish momentum that broke through support at 98.05 last week.
→ The drop was sharp (a sign of imbalance in favour of sellers), and yesterday the 98.05 level acted as resistance.
Bullish case:
→ The DXY has dropped into the median zone, where supply and demand often balance. Buyers may step in, viewing current levels as attractive for entry.
→ The RSI may potentially form a bullish divergence.
→ The latest candle on the right shows a long lower wick (a bullish pin bar pattern), underlining buyers’ determination.
Given the above, we could expect the DXY to hover around the median area. However, the upcoming US inflation reports could trigger volatility across financial markets. A test of support at 97.15 could occur.
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