The U.S. Dollar Index, often represented as DXY, was created in 1973. It measures the value of the U.S. 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). Initially set at 100, it shows how the dollar's value changes relative to these currencies.
💼 Importance:
The Dollar Index is vital for several reasons:
- 🌍 Global Trade: It's a benchmark for international trade and finance. Many contracts and commodities are priced in dollars.
- 📈 Economic Indicator: Movements in the index can indicate the U.S. economy's health and global economic trends.
- 💰 Investments: Investors use it to assess currency-related risks and make investment decisions.
📊 Factors Affecting It:
- 🏦 Interest Rates: Higher U.S. interest rates often boost the dollar's value as it attracts foreign investments.
- 📈 Economic Data: Strong U.S. economic data can strengthen the dollar.
- 🌐 Global Events: Geopolitical tensions, trade disputes, and crises can impact the dollar.
- 📉 Inflation: High inflation can erode the dollar's purchasing power.
Fibonacci perspective
Swing high - 114.778
Swing Low - 99.542
and the 38.2 % retracement is placed at 105.382 which is next super resistace
Channel Breakout
Once the index crossed the 102.83 level, it showed strenght to move forward
Forward Journey
Wait for 105.382 to be crossed on daily basis, we can see it to more towards levels of
1. 107.15
2. 108.9
We will keep a close track..
💼 Importance:
The Dollar Index is vital for several reasons:
- 🌍 Global Trade: It's a benchmark for international trade and finance. Many contracts and commodities are priced in dollars.
- 📈 Economic Indicator: Movements in the index can indicate the U.S. economy's health and global economic trends.
- 💰 Investments: Investors use it to assess currency-related risks and make investment decisions.
📊 Factors Affecting It:
- 🏦 Interest Rates: Higher U.S. interest rates often boost the dollar's value as it attracts foreign investments.
- 📈 Economic Data: Strong U.S. economic data can strengthen the dollar.
- 🌐 Global Events: Geopolitical tensions, trade disputes, and crises can impact the dollar.
- 📉 Inflation: High inflation can erode the dollar's purchasing power.
Fibonacci perspective
Swing high - 114.778
Swing Low - 99.542
and the 38.2 % retracement is placed at 105.382 which is next super resistace
Channel Breakout
Once the index crossed the 102.83 level, it showed strenght to move forward
Forward Journey
Wait for 105.382 to be crossed on daily basis, we can see it to more towards levels of
1. 107.15
2. 108.9
We will keep a close track..
Trade active
dollar index can move next towards 107.15Trade active
106 high madeTrade active
106.84 high madeTrade active
first target of 107.15 achieved, hurray
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.