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DXY 4Hour TF - August 3rd,2025🟦 DXY 4H Analysis Neutral idea
📅 August 3, 2025
🔹 Top-Down Trend Bias:
• Monthly – Bearish
• Weekly – Bearish
• Daily – Bearish
• 4H – Bullish
The dollar index is in a larger bearish cycle but just bounced from near-term resistance around 100.250. While the 4H shows temporary strength, we’re trading into major resistance and we may see it short lived.
🔍 Key Levels to Watch
• Support: 98.00
• Resistance Zones: 99.25 and 100.25
• 61.8% Fib: 98.57
Price is currently testing structure after rejecting from the 100.25 resistance zone. This area remains a strong ceiling unless the higher timeframe structure shifts.
✅ Scenario A: Bearish Continuation (Blue Path)
1. Bearish Structure confirmation below the current zone
2.If bearish rejection confirms, expect price to continue toward 98.00, possibly 97.50
3.Clean confluence with the higher timeframe trend
⚠️ Scenario B: Bullish Extension (Orange Path)
1.If price breaks and holds above 99.25, we may see a continuation toward 100.25
2.Short-term bullish strength, but against HTF bias
3.Must treat as a counter-trend idea unless confirmed with HTF structure shift
🧠 Final Notes
• 98.50 is the key decision zone, watch reaction closely
• Trend remains bearish on all major timeframes
• Don’t force the long, lean bearish unless structure proves otherwise
DOLLAR INDEX (DXY), Position Trade Bullish Point of ViewLooking at the DOLLAR INDEX (DXY), DXY might turn bullish after tapping the potential inversion fair value gap around 100.182 suggesting a macro continuation of the long-term uptrend, with price likely to retest the 103.197 IFVG (inversion fair value gap) area, break above 114.778 liquidity, and continue higher toward the 132.345 FVG from 1st of July 1985.
USD to continue down?: Weekly Review/ fundamental analysis There was a lot of information to take in during the week starting Monday 28 July. A US / EUR trade deal announcement, US GDP, MICROSOFT earnings all contributed to positive market sentiment as the S&P continued to push all time highs. But in a reminder that anything can happen, a combination of NFP, AMAZON earnings and fresh TARIFF UNREST, ensured the week ended on a sour note.
The week got off to a good start with the US / EUR announcement. Although the news weakened the EUR as it appeared the US got the better end of the deal. And all of last weeks EUR positivity was unwound.
Despite the overall positive market mood at the beginning of the week, the currencies once again didn't quite correlate with the environment, as the USD and JPY both started the week particularly strong. Which could have been put down to 'EUR liquidity', meaning the USD and JPY benefited most from the weakness of the EUR. But, more likely, I suspected it was 'positioning' ahead of the important central bank interest rate meetings.
The meetings didn't disappoint, starting with the FOMC. The overall message was a continued reluctance to immediately cut interest rates. In a thinly veiled dig at the president, the line, "looking through inflation by not HIKING rates" sent the USD soaring as the probability of a September cut dropped to 40%.
A few hours later it was the BOJ'S turn. Although acknowledging inflation, a reluctance to immediately HIKE rates disappointed JPY bulls. And when added to positive MICROSOFT earnings, by Thursday's European session we had a peak JPY short opportunity.
But, alas, it wasn't long before disappointing Amazon earnings and the president stirring the tariff pot rocked the boat. And when Friday's NFP data 'surprised to the downside', the rot set in, the S&P dropped and in particular, sentiment for the USD crumbled. And the probability of a September rate cut significantly rose back up to 90%.
It's difficult to trade NFP at the best of times, but particularly when ISM data shortly follows. But I wouldn't argue with anyone who fancied a USD short on Friday.
I begin the new week with an open mind. I do think the S&P has a good chance of recovering (it's only natural for traders to use bad news as an excuse to take profits from all time highs). Sentiment for the USD could remain subdued, I suspect the US 10year will be a prominent part of the narrative.
On a personal note, outside of trading, drunk idiots smashing a bakery window and a member of staff leaving at short notice kept me busy. But I did manage one trade. A post BOJ 'short JPY'. It was coin toss between a post FOMC 'USD long' or a standard 'risk on AUD long'. I plumbed for the AUD. Ultimately, it wouldn't have mattered and the trade it profit.
Please feel free to offer thoughts questions, maybe you've spotted something I've not mentioned.
Results:
Trade 1: AUD JPY +1.3
Total = +1.3%
DOLLAR INDEX (DXY), Position Trade Bearish Point of ViewLooking at the DOLLAR INDEX (DXY), DXY might turn bearish after tapping the FVG above, potentially falling below the long-term ascending channel on the quarterly timeframe, suggesting a macro trend reversal, with price likely to break and retest 98.393 before continuing down toward the 84.464 FVG area.
DXY Analysis todayHello traders, this is a complete multiple timeframe analysis of this pair. We see could find significant trading opportunities as per analysis upon price action confirmation we may take this trade. Smash the like button if you find value in this analysis and drop a comment if you have any questions or let me know which pair to cover in my next analysis.
DXY for this week Technical Analysis – Inverse Head & Shoulders with Neckline Retest
Current Market Situation
The chart shows an Inverse Head & Shoulders pattern, which is a bullish reversal pattern.
The neckline has been broken to the upside, providing a strong signal for potential continued bullish momentum.
The price is currently in the neckline retest phase, a critical area to confirm the bullish trend before further upward movement.
Key Zones
Retest Zone (Pullback): 98.300 – 98.700, an important support area.
Demand Zone: If price dips further, an additional support zone lies between 97.500 – 97.000.
Monthly Trendline: Offers long-term structural support, reinforcing the bullish outlook.
Potential Scenarios
✅ Bullish Scenario (Preferred):
If the price holds above the retest zone and neckline:
Target 1: 101.000
Target 2: 102.500 – 103.500
⚠ Bearish Scenario (Invalidation):
A break below 97.000 invalidates the bullish scenario and opens the door for deeper downside movement.
Conclusion
The market shows strong bullish potential after confirming the neckline retest.
97.000 is the key invalidation level for the bullish setup.
Price action around the retest zone and demand area should be monitored closely before entering trades.
⚠️ Trade at your own risk – We are not responsible for any losses.
DOLLAR INDEX DXYThe U.S. Dollar Index (DXY) is a measure of the value of the United States dollar (USD) relative to a basket of six major foreign currencies. It reflects how strong or weak the dollar is compared to these currencies collectively. The index was created by the Federal Reserve in 1973
The six currencies included in the basket and their approximate weightings are:
Euro (EUR): 57.6%
Japanese Yen (JPY): 13.6%
British Pound Sterling (GBP): 11.9%
Canadian Dollar (CAD): 9.1%
Swedish Krona (SEK): 4.2%
Swiss Franc (CHF): 3.6%
The DXY is calculated as a weighted geometric average of the dollar's exchange rates against these currencies. When the dollar strengthens against this basket, the index rises; when it weakens, the index falls.
The index is widely used by traders, investors, and economists to gauge the overall strength of the U.S. dollar in global currency markets and to inform trading and economic decisions.
In essence, the Dollar Index provides a standardized barometer of the U.S. dollar's value against its major international trading partners' currencies.
The U.S. Dollar Index (DXY) is trading near 98.684 of August 1, Friday market close.
July saw the DXY record its first monthly gain in 2025 (rising nearly 1%) as a a result of the demand floor on ascending trendline acting as dynamic support .but selling has resumed at the start of August on ADP data report, the current supply roof presents resistance to upswing capping gains on economic outlook and immigration enforcement concern.
Key Fundamental Drivers (August 2025):
Fed Policy & Inflation: The Federal Reserve kept rates steady at 4.25–4.50% in July, but persistent inflation (core PCE up to 2.8% YoY in June) and the impact of new U.S. tariffs are keeping rate cuts on hold for now.
Tariffs & Trade Policy: Fresh, globally-applied U.S. tariffs announced at the end of July have heightened risk aversion, helped the dollar find support, and stirred inflation concerns—as import price increases feed into core inflation data.
Interest Rate Differentials: While the Fed holds rates high, other central banks (especially the ECB and BOE) are signaling further easing. The resulting policy divergence still gives the dollar some support, but large inflows into alternative markets (e.g., eurozone equities, gold, yen) have also pressured the greenback.
Safe-Haven Flows: Risk-off sentiment amid trade tension and global policy uncertainty continues to prompt investors to seek the relative safety of the dollar, limiting its downside.
Composition: The DXY measures the value of USD relative to a basket of currencies: euro (57.6%), yen (13.6%), pound (11.9%), Canadian dollar (9.1%), Swedish krona (4.2%), and Swiss franc (3.6%).
The path ahead depends on upcoming U.S. inflation prints, additional Fed commentary, and how global markets react to ongoing trade disputes and central bank moves.
Longer term,
The DXY remains under pressure at the start of August 2025 but is showing tentative signs of stabilization just below the key 100 mark. The trend will hinge on Fed policy, global inflation data, and the impact of new tariffs on both inflation and global risk appetite. If buying breaks and close above weekly resistance roof then 104-103 can be reclaimed.
trading is 100% probability ,manage your risk and know that any key level can fail.
#dollar #dxy #money #eurusd #gbpusd #audusd #usdjpy
Technical Analysis | DXY | U.S. Dollar Index4-Hour Timeframe🔍 Technical Analysis | DXY | U.S. Dollar Index
4-Hour Timeframe
After hitting a strong supply zone marked in blue at the top of the chart, the price faced selling pressure and entered a bearish phase. Currently, the price is trading within a decision zone between buyers and sellers, where both bullish and bearish scenarios are possible.
🔼 Bullish Scenario:
If the price finds support at the mid-level support zone marked in green, and signs of a bullish reversal appear—such as proper candlestick formation or a renewed breakout of minor resistances (creating higher highs)—then the index is expected to move toward higher resistance levels.
🔽 Bearish Scenario:
Considering the market structure, if the mid-level support is lost and the price settles below this zone, the downtrend may accelerate. The dollar index could then move toward the lower support zone, marked in blue, which previously acted as a strong barrier and reversal area. This level may again serve as a key point to watch for market reactions.
✅ Conclusion
The U.S. Dollar Index is currently in a corrective phase, oscillating within a sensitive range. The price reaction to the current support zone will likely determine the next directional move. Therefore, it is recommended to wait for a confirmed breakout or bounce from this area before entering any trades.
US Dollar Index: Was Friday the Start of a Pullback Or Reversal?Welcome back to the Weekly Forex Forecast for the week of Aug 4 - 8th.
In this video, we will analyze the following FX market:
USD Index
The DXY had a strong week, but turned bearish Friday on weak jobs numbers. Was this just a retracement from the impulsive move up? Will price now find support for another bullish leg?
It all comes down to the +FVG, whether it holds or folds.
Look for price to continue down to discount prices early in the week... and then find it's footing on support.
Enjoy!
May profits be upon you.
Leave any questions or comments in the comment section.
I appreciate any feedback from my viewers!
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 bullish into AUGUSTThe dxy seems poised to rally following a rally above PMHs. The August OPEN decline could end up being nothing but a retracement as we rally high. Monday, Tuesday and Wednesday could range, while Thursday and the NFP push us above August's current highs. An expansion below Friday's New York AM lows (H4) could signal continued decline as we seek to establish weekly LOWS. Patience as the market unfolds is hand is ALWAYS key. Let's chat.
DXYThe DXY, or US Dollar Index, measures the value of the US dollar against a basket of six major world currencies: the euro (EUR), Japanese yen (JPY), British pound (GBP), Canadian dollar (CAD), Swedish krona (SEK), and Swiss franc (CHF). It is a weighted index, with the euro having the largest share, making movements in EUR/USD especially influential on the index. The DXY was created in 1973 by the US Federal Reserve to provide a clear benchmark for the dollar’s international strength after the collapse of the Bretton Woods system.
Since its inception, the DXY has served as a vital gauge of the dollar’s performance in global trade and financial markets. Historically, it reached its all-time high near 164.72 in 1985, during a period of aggressive US interest rate hikes and a strong economic expansion. Conversely, it hit its all-time low around 70.70 in 2008, at the peak of the global financial crisis, when confidence in the US economy sharply declined.
The index typically rises when investors seek safety in the US dollar, especially during global risk-off events or when US interest rates are relatively high. It also tends to strengthen during periods of US economic growth, reduced liquidity, or tightening by the Federal Reserve. On the other hand, the DXY weakens when the Federal Reserve cuts rates, inflation rises, or investor sentiment shifts toward riskier assets and other global currencies.
In the years following the COVID-19 pandemic, the DXY saw sharp movements. It rallied strongly in 2022 as the Federal Reserve raised interest rates aggressively to combat inflation, reaching levels above 114. This was followed by a pullback as inflation cooled and expectations of rate cuts emerged in 2023 and 2024. As of August 2025, the DXY stands at approximately 93.4, reflecting a weaker dollar compared to its recent highs, influenced by a more dovish Federal Reserve, growing US debt concerns, and rising investor interest in alternative assets such as gold and other currencies.
The DXY remains a key tool for traders, economists, and policymakers to assess the dollar’s position in the global economy. Its movements affect everything from commodity prices and trade balances to emerging market capital flows and inflation pressures worldwide.
Dollar Index in Danger: Patterns Point to More DownsideThe dollar index (DXY) is flashing serious warning signs. In this video, I break down the technical evidence behind my bearish outlook on both the monthly and daily charts. The head and shoulders pattern we spotted did work it's way to breaking the neckline BUT the target will Not be achieved as the data on the charts have changed. On the daily charts we have a strong bearish engulfing candle, there is also an RSI divergence in the overbought zone, stochastic indicator has turn down and momentum is also following along. The downtrend on the monthly timeframe has not formed any divergence yet so I expect price to fall below the previous month's low in the coming weeks.
There will be bounces from support zones on the daily and 4 hours, these will be opportunities for good entries.
If you’re holding USD or trading around it, this is a must-watch. The signals are clear—are you prepared?
Cheers and I wish everyone a profitable trade in the coming week.
Dollar Falls as Traders Price In Two 2025 Rate Cuts on Weak JobsDollar Falls as Traders Price In Two 2025 Rate Cuts on Weak Jobs Data
Introduction
In a significant turn of events for the global currency markets, the U.S. dollar has taken a sharp tumble as traders brace for a more dovish Federal Reserve. A weaker-than-expected U.S. employment report for July 2025 has prompted market participants to price in two interest-rate cuts by the Fed before the end of the year. This shift in monetary policy expectations comes during a time of heightened global uncertainty, much of it triggered by President Donald Trump's aggressive trade policies, which have already disrupted the $7.5 trillion-a-day foreign exchange market.
The Bloomberg Dollar Spot Index, a key gauge of the dollar’s strength against major currencies, plunged as much as 1%—marking its worst single-day performance since April 21, 2025. The greenback’s decline was mirrored by strong gains in rival currencies, with the Japanese yen appreciating 2.2% and the euro climbing more than 1% against the dollar.
This article delves into the recent developments surrounding the U.S. dollar, the implications of weak jobs data, the Federal Reserve’s likely response, and how Trump’s trade policies are shaping the broader economic landscape.
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Weak Jobs Data Sparks Policy Shift
The July 2025 employment report came in well below expectations. Non-farm payrolls growth fell short, and revisions for May and June showed fewer jobs were added than previously reported. These figures suggest that the U.S. labor market is cooling more rapidly than anticipated, raising concerns about the sustainability of the post-pandemic economic recovery.
According to Helen Given, a foreign exchange trader at Monex Inc., “It’s now clear that the U.S. labor market is cooling fairly sharply. There’s a good chance that Trump’s crusade against Chair Powell ratchets up further in the coming days, and there could be further losses for the dollar to come as a result.”
The disappointing employment data has led traders to adjust their expectations for U.S. monetary policy. Futures markets are now pricing in two 25-basis-point rate cuts by the end of 2025, a stark reversal from the earlier outlook that suggested the Fed would remain on hold or even consider tightening if inflation remained sticky.
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The Federal Reserve’s Dilemma
The Federal Reserve now finds itself in a precarious position. On one hand, inflation has moderated in recent months, giving the central bank more room to maneuver. On the other hand, a weakening labor market could indicate a broader slowdown that might require immediate action to prevent a recession.
Fed Chair Jerome Powell has come under increasing political pressure from President Trump, who has publicly criticized the Fed for keeping rates too high. Trump argues that rate cuts are necessary to support U.S. exporters and counteract the negative effects of his own tariffs and trade restrictions.
Historically, the Fed has maintained its independence from political influence, but in an election year, the pressure to act can become intense. If the Fed moves to cut rates, it will be seen as responding to both economic data and political dynamics—a delicate balancing act.
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The Global Currency Market Reacts
The ripple effects of the dollar’s decline are being felt across the globe. The $7.5 trillion-a-day foreign exchange market, already under strain from geopolitical uncertainty and shifting central bank policies, has seen increased volatility in recent weeks.
The Japanese yen, often viewed as a safe-haven currency, surged 2.2% against the dollar following the release of the jobs data. Meanwhile, the euro gained over 1%, reflecting investor sentiment that the greenback’s era of dominance may be waning—at least for now.
Emerging market currencies also found some relief, as a weaker dollar generally eases pressure on countries with large dollar-denominated debts. However, the overall picture remains complex, as trade tensions and capital flow volatility continue to weigh on risk sentiment.
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Trump’s Trade Policies: A Double-Edged Sword
President Trump’s trade strategies have been a central feature of his second term in office. From imposing tariffs on Chinese imports to renegotiating trade agreements with the European Union and Canada, Trump has sought to reshape the global trading system in favor of American manufacturers.
Yet these policies have produced mixed results. While some sectors have benefited from protectionist measures, others—particularly those reliant on global supply chains—have suffered from rising costs and retaliatory tariffs. The uncertainty generated by these policies has also dampened business investment, slowed global trade, and disrupted financial markets.
“The dollar had tumbled this year as Trump’s aggressive trade policies rocked the $7.5 trillion-a-day currency market, weighing on global growth outlook,” Bloomberg reported.
Investors are increasingly concerned that continued trade friction, combined with growing political pressure on the Fed, could lead to policy missteps that undermine the U.S. economy and erode confidence in the dollar.
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Market Implications
The dollar’s recent decline has far-reaching implications for various asset classes:
1. Equities
U.S. equities have shown mixed reactions. While lower interest rates are typically supportive of stock prices, the underlying reason—economic weakness—has investors on edge. Sectors such as technology and consumer discretionary are expected to benefit from cheaper borrowing costs, but cyclical sectors may struggle if growth slows further.
2. Bonds
Treasury yields have fallen sharply as traders anticipate rate cuts. The 10-year yield dropped below 3.8%, its lowest level in months. The yield curve has also flattened, a potential warning sign of slowing economic momentum.
3. Commodities
A weaker dollar typically supports commodity prices, as most are priced in dollars. Gold, oil, and industrial metals all saw gains in the wake of the jobs report. However, demand-side concerns stemming from a global slowdown could limit the upside.
4. Emerging Markets
For emerging markets, a softer dollar offers both relief and risk. On the positive side, it reduces debt servicing costs and can attract capital flows. On the negative side, if the dollar’s weakness reflects a broader global slowdown, risk appetite could remain subdued.
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Looking Ahead: What to Watch
As markets digest the latest economic data and policy signals, several key developments will be closely monitored:
1. Upcoming Fed Meetings
The Federal Open Market Committee (FOMC) will meet again in September. Markets will be keenly watching for any changes in tone or new forward guidance. A rate cut in September now appears increasingly likely, especially if subsequent data confirms a labor market slowdown.
2. Inflation Trends
While inflation has moderated, it remains a key concern for policymakers. If inflation rebounds unexpectedly, it could complicate the Fed’s ability to cut rates without stoking price pressures.
3. Geopolitical Risks
Trade tensions, particularly with China and the EU, remain unresolved. Any escalation could further destabilize markets and weigh on the dollar. Additionally, developments in the Middle East, Eastern Europe, and Southeast Asia could add to the uncertainty.
4. U.S. Presidential Politics
With the 2026 presidential election campaign already underway, Trump’s rhetoric and policy decisions will continue to influence market sentiment. His ongoing criticism of the Fed could erode confidence in U.S. institutions, particularly if it leads to perceived politicization of monetary policy.
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Conclusion
The sharp fall in the U.S. dollar following weak July jobs data marks a pivotal moment in 2025’s economic narrative. With traders now pricing in two Federal Reserve rate cuts by year-end, the stakes have never been higher for policymakers, investors, and political leaders.
While a softer dollar can provide some temporary relief to exporters and boost inflation expectations, it also reflects deeper concerns about the strength of the U.S. economy and the unintended consequences of aggressive trade policies. President Trump’s confrontational approach to global trade, combined with mounting pressure on the Fed, is creating a complex and potentially volatile environment for markets.
As the year progresses, all eyes will be on the Federal Reserve’s response, the resilience of the U.S. labor market, and the evolving political landscape. In a world where headlines can move markets in seconds, clarity, stability, and sound policy have never been more critical.
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Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice.






















