USD Dollar Index (DXY): Pushing Higher As Forecast!Welcome back to the Weekly Forex Forecast for the week of July 30 - Aug1
In this video, we will analyze the following FX market:
USD Index
In my last USD video, the forecast was for higher prices. Check the related links below to see that video forecast. It played out exactly as analyzed. The +FVG was used to push for higher prices. The FOMC decision to keep the rate unchanged only pushed it further along.
Enjoy!
May profits be upon you.
Leave any questions or comments in the comment section.
I appreciate any feedback from my viewers!
Like and/or subscribe if you want more accurate analysis.
Thank you so much!
Disclaimer:
I do not provide personal investment advice and I am not a qualified licensed investment advisor.
All information found here, including any ideas, opinions, views, predictions, forecasts, commentaries, suggestions, expressed or implied herein, are for informational, entertainment or educational purposes only and should not be construed as personal investment advice. While the information provided is believed to be accurate, it may include errors or inaccuracies.
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 trade ideas
DXY with interest rates With interest rates remaining steady, the U.S. Dollar is currently moving in a bullish direction.
As shown in the chart, it seems likely that price will break the previous high and form a bullish Quasimodo (QM) pattern. The price may then reach the 50% Fibonacci level.
After that, we should wait and observe the market's reaction.
If price gets rejected from the 103 zone — especially if accompanied by a rate cut or bearish price action — we could see a sharp decline toward the 95 area.
This 95 zone also aligns with a key weekly Fibonacci support level on the Dollar Index.
As long as the Federal Reserve maintains its hawkish stance, the U.S. Dollar may continue its upward momentum. However, the 103–104 zone — which aligns with the 50% Fibonacci retracement and a significant supply area — could serve as a strong resistance.
If price gets rejected from this area and we simultaneously see signs of a rate cut or weakening U.S. economic data, a trend reversal and corrective phase could begin. In that case, lower targets around 95 or even 93 could become likely in the medium term.
good luck
DXY Bulls Ready — Can Powell Spark the Rally?📊 DXY Pre-FOMC Outlook
In my previous analysis released on Monday, I expected the Dollar Index to fill the gap around the 98.60 zone and range below the key red line at 99.429.
Now, with less than 8 hours left until the highly anticipated FOMC rate decision, it’s time to take a closer look at tonight’s event and what it could mean for the markets.
From a purely technical perspective — setting the news aside — the Dollar Index looks ready to break through the crucial 100 level and kick off a strong bullish rally.
However, recent political pressure from Trump urging rate cuts, along with visible tension between him and Fed Chair Jerome Powell, has created uncertainty. If it weren’t for these conflicting signals, I would’ve confidently expected a clean breakout above 100.
As much as I enjoy trading news-driven events, I’ll likely stay out of the market tonight and observe from the sidelines. The setup is tempting, but the dual narratives make it risky.
That said — if you ask for my final take — I believe the stage is fully set for a bullish dollar and a corresponding drop in gold, EUR, GBP, and other major assets.
Let’s see how it plays out. 👀💥
DXY BEARISH TREND 30-JUL 15-JUN 2025There are some major upcoming events that could significantly impact the US dollar index (DXY), including the ADP Non-Farm Employment Change and the Federal Funds Rate decision. Because of this, I expect the DXY to continue its downward movement until it reaches around 94.5. If it breaks below that level, it’s also possible that it could drop further and reach 89.00.
Currently, the DXY is expected to start its move downward from the 99.20–99.50 range, making a decline from that level quite likely
DXY still in downward channel. Rejection here = BTC rally The DXY is still in a downward sloping channel and trying to break back above the previous 2-year cycle low, but I think will reject here and kick off the next leg of the BTC rally.
Ideally we get a big DXY drop and ultimately break below the 95% level and on down into 'Bitcoin Super Rally Zone'🚀
DOLLAR INDEX DXYThe latest U.S. economic data released on July 30, 2025 shows:
ADP Non-Farm Employment Change: Actual increase of 104,000 jobs, significantly above the forecast of 77,000. This marks a strong rebound from the previous decline of -23,000 in June and indicates solid labor market momentum, particularly in services sectors like leisure/hospitality, financial activities, and trade/transportation. However, education and health services saw job losses. Wage growth remains steady at 4.4% year-over-year for job-stayers.
Advance GDP q/q Growth: Actual growth came in at 3.0%, beating the forecast of 2.5% and improving sharply from -0.5% previously. This suggests that the economy is expanding robustly in the second quarter
Advance GDP Price Index q/q (Inflation measure): Actual was 2.0%, slightly below the forecast of 2.2%, and down from 3.8% previously, indicating easing inflation pressures .
Interpretation of this data for Federal Reserve policy:
The stronger-than-expected job growth and GDP expansion signal a resilient economy, which may reduce the immediate likelihood of Fed rate cuts, as these indicators support sustained economic momentum.
The slightly softer inflation reading on the GDP Price Index suggests inflation pressures are continuing to moderate, which could offer some flexibility to the Fed.
Overall, the Fed is likely to view this data mix as supportive of a cautious, data-dependent approach, possibly maintaining current rates in the short term without rushing to cut, but monitoring to ensure inflation stays on a downward path.
If the Fed prioritizes strong growth and a resilient labor market, rate hikes or holds are more likely than cuts. If inflation remains subdued, it could permit a gradual easing down the line but probably not immediately.
Let me know if you want a detailed outlook on market reactions to this release or the potential Fed communication following today’s data.
#GOLD
Just a bounce off or a real trend reversal?DXY sits on a major support zone. Price often delivers a reflex bounce at strong levels before continuing the prevailing trend, so a quick pop isn’t proof of a new bull run. DXY is closely linked to US real yields (10y TIPS): if real yields roll over as the Fed eases, USD strength likely fades; if real yields stay firm, a durable reversal is more plausible.
This post is for informational/educational purposes only and is not investment advice or a solicitation to buy/sell any security. Past performance is not indicative of future results. I may hold positions related to the instruments mentioned.
DXY UPDATE FOR LONG as we forecast a long term this an update
The dollar index (DXY00) on Tuesday rose by +0.22% and posted a 5-week high. The dollar has carryover support from Monday following the EU-US trade deal that is seen as favoring the US. Also, expectations for the Fed to keep interest rates unchanged at the end of Wednesday's 2-day FOMC meeting are supportive of the dollar. The dollar extended its gains after the US Jun advance goods trade deficit unexpectedly shrank, a supportive factor for Q2 GDP, and after July consumer confidence rose more than expected.
US Dollar Index (DXY) Chart Analysis – 1H TimeframeUS Dollar Index (DXY) Chart Analysis – 1H Timeframe
This chart shows the **US Dollar Index (DXY)** with key price zones, trendlines, and EMA indicators. Here's a detailed analysis:
**Key Observations:**
* **Price:** Currently trading near **98.41**
* **EMAs:**
* **EMA 7** = 98.373 (short-term trend)
* **EMA 21** = 98.356 (medium-term trend)
* **Trendline:** Uptrend line still intact, acting as dynamic support
* **Volume:** Steady, no strong breakout yet
* **Support Zones:** 98.20 – 98.35
* **Price Structure:** Consolidating above support and EMAs after a pullback from highs
**Bullish Scenario**
* If price **holds above EMAs and the green support zone (98.20–98.35)**
* **Breakout above 98.50** would confirm strength
* Targets:
→ **98.70**
→ **99.00+** if trendline support continues to hold
* EMAs are aligned bullishly (7 above 21) – good sign for continued upward trend
**Bearish Scenario**
* If price **breaks below 98.20 and closes under the trendline**
* Watch for rejection near 98.50 followed by strong red candle
* Downside targets:
→ **97.80**
→ **97.60**
* A breakdown below the ascending trendline = trend shift confirmation
**Conclusion**
* **Bias:** Bullish as long as DXY stays above 98.20 and trendline
* **Invalidation:** A break and close below 98.20 + trendline = bearish shift
DXY: Bulls Are Winning! 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 98.471 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❤️
US Dollar Index (DXY) – 4H Chart AnalysisUS Dollar Index (DXY) – 4H Chart Analysis
**Current Trend:** Bearish
Price trades below EMAs, Ichimoku Cloud, and within a bearish channel.
#**Bearish Scenario (Favorable)**
* **Conditions:**
* Price remains below EMA 7 & 21
* Stays under Ichimoku Cloud and 96.812 resistance (R1)
* Lower lows forming, bearish momentum increasing
* **Confirmation:**
Break below **96.37 (blue zone)**
* **Target:**
* TP1: 96.00
* TP2: 95.60 (next weak support)
**Bullish Scenario (Reversal)**
* **Conditions:**
* Price must break above **96.81 (EMA 7 + resistance)**
* Break above **R1 → 96.90**, and then above **R2 → 97.14–97.19**
* Bullish candles close above the Ichimoku cloud
* **Confirmation:**
Break and retest of **97.20**
* **Target:**
* TP1: 97.39
* TP2: 97.58 (key structure)
* TP3: 98.00 (major resistance)
**Bias:** Bearish unless DXY breaks above **97.20** with strong volume and bullish structure.
DXY Chart Outlook: Trend, Support, and Price Objectives**DXY Chart Outlook: Trend, Support, and Price Objectives (Reworded Analysis)**
**Trend Overview**
* The DXY chart reflects a **clear upward trajectory**, characterized by a sequence of **ascending highs and higher lows** — a classic sign of bullish momentum.
* Currently, the price is **retracing toward the 50-day EMA**, which appears to be holding as **dynamic support**.
* Two important **horizontal support zones** are marked:
* **Support 1 (S1):** \~97.400 (aligned with EMA-50)
* **Support 2 (S2):** \~96.800 (a deeper correction level)
**Projected Price Zones**
* **Near-Term Objective:** **98.800 to 99.000**
* A rebound from the EMA or S1 could send price higher toward this zone, continuing the current bullish structure.
* **Mid-Term Target:** **99.200 to 99.400**
* If the price successfully clears the 99.000 resistance, further bullish continuation could aim for this intermediate target range.
* **Extended Target:** **100.000+**
* A sustained breakout beyond 99.400 could open the path toward **psychological resistance at 100.000**, possibly higher on strong momentum.
**Support Zones to Watch**
* **S1 (97.400):** This level coincides with the 50-day EMA and represents a **first line of defense**.
* **S2 (96.800):** Should the price fall below S1, this secondary level could provide **stronger support** and potential bounce opportunity.
**Risk Management**
* Consider placing a **protective stop** just below S2 — around **96.500** — to safeguard against a potential trend reversal or deeper correction.
**Summary**
* The DXY remains **technically bullish**, with potential upside targets at **98.800**, **99.400**, and eventually **100.000+**.
* Traders can monitor **S1 and S2** for potential entries or trend confirmation.
* A **breakdown below 96.500** would invalidate the bullish setup and warrant caution.
DXY | Timeframe: 1MWith the breakout of the downtrend line drawn since 1985 and its breach in late 2014, the DXY index officially entered a relatively stable upward trend and is currently oscillating within a parallel channel. Although, on the monthly timeframe, it has recently touched the lower boundary of the channel, we can expect at least a rise toward the channel’s midline. However, if the lower support of the channel is broken, a static support around the approximate rate of 88 can be considered a notable support level. Should this support also fail, the long-term downtrend dating back to 1985 would be regarded as the most important support for the DXY index. Meanwhile, moving averages such as the MA50, MA100, and other longer-period moving averages serve as dynamic supports along the way.
It is also worth mentioning that currently reaching the 120 level is considered an ideal target for the DXY index, and ultimately, it is by breaking this resistance zone that the index can reach its “Utopia”.
---------
I will try to continuously update this analysis of the TOTAL symbol according to market changes and developments. Also, I welcome reading your critiques and comments, so don’t forget to leave a comment!
DOLLAR INDEX The federal funds rate is the interest rate at which U.S. banks and credit unions lend their excess reserve balances to other banks overnight, usually on an uncollateralized basis. This rate is set as a target range by the Federal Open Market Committee (FOMC), which is the policymaking arm of the Federal Reserve. The current target range as of July 2025 is approximately 4.25% to 4.5%.
The federal funds rate is a key benchmark that influences broader interest rates across the economy, including loans, credit cards, and mortgages. When the Fed changes this rate, it indirectly affects borrowing costs for consumers and businesses. For example, increasing the rate makes borrowing more expensive and tends to slow down economic activity to control inflation, while lowering the rate stimulates growth by making credit cheaper.
The Fed adjusts this rate based on economic conditions aiming to maintain stable prices and maximum employment. It is a vital tool of U.S. monetary policy, impacting economic growth, inflation, and financial markets.
In summary:
It is the overnight lending rate between banks for reserve balances.
It is set as a target range by the Federal Reserve's FOMC.
It influences many other interest rates in the economy.
Current range (July 2025) is about 4.25% to 4.5%.
1. ADP Non-Farm Employment Change (Forecast: +82K, Previous: -33K)
Above Forecast:
If ADP employment is much stronger than expected, the Fed would see this as a sign of ongoing labor market resilience. Robust job growth would support consumer spending, potentially keep wage pressures elevated, and could make the Fed less likely to ease policy soon. This reinforces the case for holding rates steady or staying data-dependent on further cuts.
Below Forecast or Negative:
If ADP jobs gain falls short or is negative again, the Fed may interpret it as a weakening labor market, raising recession risk and reducing inflationary wage pressures. This outcome could increase the chances of a future rate cut or prompt a more dovish tone, provided it aligns with other softening indicators.
2. Advance GDP q/q (Forecast: +2.4%, Previous: -0.5%)
Above Forecast:
A GDP print above 2.4% signals surprisingly strong economic growth and likely sustains the Fed’s view that the U.S. economy is avoiding recession. The Fed may delay rate cuts or take a more cautious approach, as stronger growth can support higher inflation or at least reduce the urgency for support.
Below Forecast or Negative:
Weak GDP—especially if close to zero or negative—would signal that the economy remains at risk of stagnation or recession. The Fed may then pivot to a more dovish stance, become more willing to cut rates, or accelerate discussions on easing to avoid a downturn.
3. Advance GDP Price Index q/q (Forecast: 2.3%, Previous: 3.8%)
Above Forecast:
A significantly higher-than-expected GDP Price Index (an inflation measure) points to persistent or resurgent inflationary pressures in the economy. The Fed might see this as a reason to delay cuts or maintain restrictive rates for longer.
Below Forecast:
If the Price Index prints well below 2.3%, it suggests that inflation is cooling faster than anticipated. This outcome could allow the Fed to move toward easing policy if other conditions warrant, as price stability is more clearly in hand.
Bottom Line Table: Data Surprises and Likely Fed Reaction
Data Surprise Fed Outlook/Action
All above forecast Hawkish bias, rate cuts delayed or on hold
All below forecast Dovish bias, higher chances of rate cut
Mixed Data-dependent, further confirmation needed
Summary:
The Fed’s interpretation hinges on how these figures compare to forecasts and to each other. Stronger growth, jobs, and inflation = less rush to cut; weaker numbers = lower rates sooner. If growth or jobs are especially weak or inflation falls sharply, expect more dovish Fed commentary and a greater likelihood of future easing. Conversely, if the data all surprise to the upside, hawkish (rate-hold) messaging is likely to persist.
The U.S. Dollar Index (DXY) is a financial benchmark that measures the value of the United States dollar relative to a basket of six major foreign currencies. It provides a weighted average reflecting the dollar's strength or weakness against these currencies. The DXY is widely used by traders, investors, and economists to gauge the overall performance and health of the U.S. dollar on the global stage.
Key Features of the DXY:
Currencies included and their weights:
Euro (EUR) – 57.6%
Japanese Yen (JPY) – 13.6%
British Pound (GBP) – 11.9%
Canadian Dollar (CAD) – 9.1%
Swedish Krona (SEK) – 4.2%
Swiss Franc (CHF) – 3.6%
It was established in 1973 after the collapse of the Bretton Woods system to serve as a dynamic measure of the dollar's value.
The index reflects changes in the exchange rates of theses versus the U.S. dollar, with a higher DXY indicating a stronger dollar.
The DXY influences global trade dynamics, commodity prices (like oil and gold)
DXY Surge Pressures Currency Market in Volatile Market WeekThe US Dollar Index (DXY) has held its rebound off historical support zones on both the price chart and the RSI indicator throughout July. The monthly RSI is bouncing off a support line extending between the troughs of 2008 and 2020. Meanwhile, price action is rebounding from a support trendline that connects the lows of 2008, 2014, and 2021, within the 96–94 zone.
Bearish Scenario: A solid close below this support zone may confirm a long-term bearish signal, potentially pushing the index toward the 94 and 90 levels.
Bullish Scenario: A confident move above 100 and 103 could signal a reversal in the currency market, potentially leading the DXY back toward the mid-range of the long-standing channel between 105 and 107, originating from the 2008 lows.
Written by Razan Hilal, CMT
U.S. Dollar Index (DXY) – July 30, 2025 | 15-Min Chart1. **Range-Bound Structure**
DXY is consolidating between 98.588 support and 99.134 resistance. The 98.68–98.74 zone has acted as demand, but repeated retests show weakening buyer interest.
2. **Failed Breakouts**
Multiple rejections at 99.134 indicate it's a trap zone where sellers absorb buy-side pressure.
3. **Bearish Momentum Signs**
Lower highs and wicks into resistance with weak closes suggest distribution. Momentum likely shows bearish divergence.
4. **Critical Levels**
* **Support:** 98.588 — a break below this opens downside potential.
* **Resistance:** 99.134 — bulls need a strong breakout above this for continuation to 99.41+.
Summary:
Sellers dominate below 99.134. If 98.588 breaks, expect bearish continuation. Only a confirmed breakout above 99.134 shifts bias bullish.