Interest Rate Decision and DXY – 1-Week - Tradertilki AnalysisMy friends,
Today, the most important fundamental news from the U.S. will be the interest rate decision.
This data will determine the direction of both gold and cryptocurrencies.
If there is an interest rate cut, gold and bitcoin will rise; if there is a rate hike, gold and bitcoin will fall.
Before approaching other trades today, I believe it is beneficial to wait for this important news release.
If DXY manages to break above the 101,550 – 99,143 levels, the first level it will want to test is 103,360.
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US DOLLAR INDEX - Key Breakout or Just a Relief Pump?INDEX:DXY
Not gonna lie, this chart looks like the dollar is walking on thin ice right now. Price just slipped under that 50 EMA after failing to pierce their high at 100.360
We've still got that solid support parked near 98.030 and if that gives way we will keep pointing straight down to the 96.3 liquidity shelf from mid-year.
The structure kinda screams “lower highs, lower strength,” and that supply zone up at 101.977 is still untouched, just chilling up there like a concrete slab ceiling.
And honestly… I’m not even big on following economic news, but lately I keep seeing about higher living costs and ‘soft landing’ things, so part of me feels like the $$ might be leaning bear by that alone. Am I the only one seeing that no? lol
Dollar Index Has Fallen to Its Lowest Level in Almost 1.5 MonthsThe Dollar Index Has Fallen to Its Lowest Level in Almost 1.5 Months
The key event of the week will take place on 10 December – at 22:00 GMT+3 the FOMC will publish its interest rate decision, followed half an hour later by a press conference with Jerome Powell.
As the chart of the dollar index (DXY) shows, the US dollar is weakening as the event approaches, reflecting market sentiment – the rate is expected to be cut by 25 basis points due to pressure from Trump and a cooling labour market. This underpins the bearish trend that has been in place since late November.
A reminder that on 24 November we:
→ highlighted the importance of resistance around 100.20 points;
→ and constructed a system of two trend channels.
Since then, the price has moved lower within the descending channel, and:
→ new swing points have allowed us to refine the channel boundaries;
→ a large bearish double-top pattern (A–B) has formed on the chart above the psychological level of 100 points.
The dollar index chart indicates that selling pressure is dominant (as shown by the arrows):
→ the lower boundary of the ascending channel has switched its role from support to resistance;
→ a similar role reversal has occurred at the 99.11 level.
Today, the DXY index is near the lower boundary of the descending channel. It is reasonable to assume that in the short term:
→ the market will enter a wait-and-see mode ahead of the news;
→ a consolidation zone may form on the chart, supported by the lower boundary of the red channel.
Be prepared for surges in volatility on the currency markets on Wednesday evening.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Dollar Index at Critical Support — Is a Big USD Rally Coming?Today I want to analyze the DXY index( TVC:DXY ) for you, which is one of the key indices in the financial markets.
At the moment, the DXY index is moving near a support zone($98.85-$98.50), Monthly Support (1) level, and the 21_SMA(Weekly).
In addition, the DXY has been trending inside a descending channel for roughly the past 13 trading days.
The main question is whether the DXY can break below this confluence of support levels or not.
Looking at the 4-hour chart, we can identify a Morning Star candlestick reversal pattern, and there is also a clear bullish Regular Divergence (RD+) between the last two lows.
Moreover, the US 10-Year Government Bond Yield ( TVC:US10 ) appears bullish in my view — and its upward movement can potentially support a rise in the DXY as well.
From my perspective, the best currency pairs to capitalize on a stronger USD are USDJPY( FX:USDJPY ) and EURUSD( FX:EURUSD ).
We should also keep in mind that several important US economic indicators will be released this week, which could significantly impact market direction. So be extra cautious with your positions, especially during data releases:
JOLTS Job Openings➡️09 December
Federal Funds Rate➡️10 December
FOMC Statement➡️10 December
FOMC Press Conference➡️10 December
Unemployment Claims➡️11 December
I expect that once the DXY breaks above the upper line of the descending channel, it could at least move toward one of the higher Fibonacci levels.
Do you think the U.S. interest rate will be cut this week?
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📌U.S. Dollar index Analysis (DXYUSD), 4-hour time frame.
🛑 Always set a Stop Loss(SL) for every position you open.
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Dollar Index Chart Analysis After the Fed DecisionDollar Index Chart Analysis After the Fed Decision
Following yesterday’s FOMC interest rate decision and Jerome Powell’s press conference, the US Dollar Index (DXY) dropped sharply to point A.
On one hand, the 0.25% rate cut makes the dollar less attractive for capital preservation and yield. On the other, the prospect of a pause before further cuts provides some support.
Thus, the current level represents the market’s attempt to establish a fair valuation for the US currency.
Technical Analysis of the DXY Chart
Three days ago, we:
→ updated the system of two trend channels;
→ noted signs of seller dominance;
→ highlighted the formation of a consolidation zone.
Yesterday’s decline prompted an extension of the blue upward channel formed in October–November. Key insights from recent price action include:
→ the consolidation zone (marked by black lines) was broken after the median of the red channel acted as resistance (indicated by the arrow);
→ the price fell to the lower boundary of the red channel;
→ the former support around 98.78 acted as resistance this morning (marked by the second arrow);
→ the RSI indicator is near oversold levels, reflecting ongoing selling pressure.
Considering the above, a scenario of further downward movement along the lower boundary of the red channel seems plausible. If this develops, the price may fall to the lower boundary of the blue channel, which could serve as a key support level.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
DXY Steady as Markets Brace for a “Hawkish Cut”DXY Steady as Markets Brace for a “Hawkish Cut”
The US Dollar Index (DXY) is trading around the 99.00 level as the market waits for the upcoming Fed decision.
Although the dollar has attempted to recover in recent sessions, momentum has slowed as traders prepare for what could be a “hawkish rate cut” — a scenario where the Fed cuts rates but signals a cautious or firm stance on future policy.
Most of the expected 25 bps rate cut is already priced in.
From a technical perspective, DXY has already broken out of the downward channel, and if bullish pressure continues, the index may aim for the short-term target at 99.50, followed by 100.00.
Let’s see how the market reacts as volatility picks up around the FOMC announcement.
You may find more details in the chart!
Thank you and Good Luck!
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Major Volatility Incoming – The Most Important News of 2025**“Tomorrow’s U.S. interest rate decision is one of the most critical events of 2025, with the potential to shape market direction across all major asset classes. The Federal Reserve’s stance on rates will directly influence liquidity, risk sentiment, and overall market volatility.
A higher-than-expected rate would strengthen the dollar, increase borrowing costs, and typically pressure risk assets such as Bitcoin, equities, and commodities. On the other hand, a rate cut or a dovish outlook could trigger a strong risk-on reaction, supporting upward momentum in crypto and other high-beta assets.
This announcement is especially important because markets are currently at key technical levels. The reaction to tomorrow’s decision will likely determine whether ongoing downtrends are coming to an end or if another wave of rejection and continuation to the downside is ahead.
Traders should anticipate elevated volatility both before and after the release. Managing risk is essential, as sudden price spikes and liquidity gaps are common during major FOMC events.”**
DXY is making perhaps the final pull-back before a massive rallyThe U.S. Dollar index (DXY) has been trading within a Channel Up since the March 2008 bottom during the U.S. Housing Crisis. This is not the first time we use this pattern to identify key macro trend shifts, in fact we revisited it a little over 2 months ago.
The incredible symmetry it's been showing, with clear correction phases (red Channels) followed by bullish phases, eventually lead to price rallies to the 1.618 Fibonacci extension.
Right now the price is past a 1W Death Cross, which has always been a bottom signal on this multi-year Channel Up, and is pulling back on perhaps the final mini drop before the new 2-year Bullish Leg begins.
This has always happened at the end of the Bear Cycles (red correction phase) with the Arc pattern showing a final pull-back before the decisive rebound the breaks above the 1W MA50 (blue trend-line). That break-out is the confirmation of the Bull Cycle start (Bullish Leg).
With the 1M RSI having already touched its 16-year Support Zone, which has provided the most optimal Buy Signals throughout this pattern, we expect the Dollar Index to start rising aggressively in the long-term, targeting the 120.000 - 128.000 Zone on its way to the 1.618 Fib ext, which has been where the previous Higher Highs (Cycle Tops) were priced.
Notice also that a solid peak indicator (Sell signal) is when the 1M RSI hits 80.00, indicating that the market is massively overbought (overheated trend).
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DXY: The Dollar Isn’t Done Talking YetDXY, I’ve been staring at the Dollar long enough to notice something important: this isn’t a random bounce. After months of digestion and frustration on both sides of the trade, DXY looks like it’s quietly regaining control. The tape is no longer just reacting to single data prints. It’s responding to a broader realization that the Fed may cut rates, but not in a way that collapses the dollar story. This chart feels less like noise and more like a setup.
Current Bias
Bullish, with confirmation pending.
DXY has spent most of the year consolidating after a deep pullback and now appears to be breaking higher from a rising structure. Momentum is rebuilding as the market reassesses how aggressive Fed easing will really be.
Key Fundamental Drivers
The dominant driver remains relative monetary policy expectations. While the Fed is expected to cut, markets are increasingly dialing back the idea of rapid or deep easing. US growth is slowing but holding up better than Europe and parts of Asia. Labor markets are softening but not collapsing, keeping the Fed cautious rather than urgent. This supports USD resilience.
At the same time, other major central banks look more constrained. The ECB and BoE face weaker growth backdrops, and the BoJ’s normalization path remains slow and fragile, which limits sustained USD downside versus JPY.
Macro Context
Interest rate differentials still matter. Even with Fed cuts priced, US real yields remain relatively attractive. Global growth remains uneven, with Europe stagnating, China stabilizing but not accelerating, and the US still outperforming at the margin.
Commodity flows also matter here. A firm dollar tends to weigh on commodities and commodity-linked currencies, reinforcing feedback loops into AUD, NZD, and CAD. Geopolitical risk remains a background bid for USD, especially as markets remain sensitive to trade policy, Middle East tensions, and shifting US election rhetoric.
Primary Risk to the Trend
The biggest risk is overconfidence in the Fed staying behind the curve. A sharp deterioration in US labor data or a sudden drop in inflation could force the Fed into a faster easing cycle, undermining the yield support for USD and invalidating the bullish structure.
Most Critical Upcoming News/Event
The next cluster of US inflation data, labor market releases, and Fed communication is critical. Markets are watching for confirmation that cuts will be measured, not panicked. Any clear Fed pushback against aggressive easing expectations would strongly support this DXY breakout.
Leader/Lagger Dynamics
DXY is a leader.
When DXY moves with intent, it drags the rest of FX with it. Strength here typically pressures EURUSD, AUDUSD, NZDUSD, and gold, while reinforcing downside risks in USDJPY pullbacks and risk-sensitive assets. If DXY follows through, expect confirmation across USD pairs rather than divergence.
Key Levels
Support Levels:
98.20–98.50 (structure support and trend retention zone)
96.20 (major downside invalidation level)
Resistance Levels:
100.00 (psychological and structural resistance)
102.00–103.00 (measured move resistance if momentum accelerates)
Stop Loss (SL):
Below 96.20 on a daily close, which would signal a failed structure and broader USD weakness.
Take Profit (TP):
First objective near 102.00, with extended upside toward the prior highs near 109–110 if macro conditions align.
Summary: Bias and Watchpoints
The bias for DXY is cautiously bullish. The structure suggests accumulation rather than distribution, supported by relative growth resilience, steady real yields, and a Fed that remains careful, not desperate, to cut. The key risk is a sudden shift toward aggressive Fed easing driven by weak inflation or labor data. Until that happens, dips look corrective rather than trend-ending. As a leader asset, DXY’s next move is likely to ripple across major FX pairs, commodities, and risk sentiment. If this breakout holds, the dollar conversation is far from over.
US Dollar: Bearish! Look To Sell it towards 98.56!Welcome back to the Weekly Forex Forecast for the week of Dec 8-15th.
In this video, we will analyze the following FX market: USD Dollar
The USD is currently bearish, sitting in a Daily -FVG. If the FVG holds, the sell off will continue from last week. Should the -FVG fail, then hold off on sells! A close above the -FVG will be a bullish indication.
Wed's FOMC will likely weaken the currency further, as institutions have seemingly baked in their bearish bets.
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.
Dollar Outlook 2026The FOMC Just Set the Tone for 2026 — And Markets Are Underpricing What Comes Next
By Ozkar Meyssen
The December FOMC meeting was more than just another policy update. It was a structural pivot — the type of meeting that sets the tone not for the next quarter, but for the next several years of global macro and FX pricing.
While headlines focused on the Fed’s acknowledgment that inflation is unlikely to fall back to 2% in the near term, the deeper takeaway was far more important: Chair Powell is shifting his reaction function toward supporting the labor market — and that implies a more aggressive easing path ahead.
And right now, markets are not fully pricing that trajectory.
Powell’s Messaging: The Fed Is Preparing to Cut Further
Powell struck a nuanced but unmistakable tone:
He acknowledged inflation is still above target,
but treated it as a secondary concern.
He highlighted that U.S. GDP remains strong,
but dismissed it as a constraint on easing.
And most importantly:
he emphasized the labor market as the critical area requiring policy attention.
A Fed focused on unemployment is a Fed preparing to stimulate. And the primary tool for stimulating the labor market is clear:
Cut rates — repeatedly and sooner rather than later.
Powell reminded markets that the Fed has already delivered 75 bps of cuts over the last three months and — notably — suggested that this easing cycle is likely to continue because it “will help the economy.”
This is not the language of a reluctant central bank.
This is the language of a Fed preparing the market for a longer, deeper easing path.
Markets have not fully internalized this yet.
Political Pressure Is Now A Market Driver
Just hours after the meeting, President Trump openly criticized the Fed, calling it “stupid” for not cutting 50 bps on the spot.
Central banks maintain independence — in theory.
In practice, political pressure matters, especially when tied to unemployment concerns and election timelines. Trump’s commentary adds an additional layer of downward bias to the dollar because:
It frames aggressive cuts as the “expected” political baseline.
It increases the likelihood that Powell will lean more dovish to avoid public conflict.
It pressures markets to price a steeper easing curve.
This dynamic strengthens the dovish impulse already emerging from the FOMC.
What Markets Are Currently Pricing (And Why It’s Too Shallow)
Before the meeting, markets had only one rate cut priced in for 2026.
After this meeting?
That expectation is almost certainly too low.
Between Powell’s focus on unemployment, the ongoing cuts already delivered, and overt political pressure, the logical repricing is for multiple cuts in 2026 — not a single, isolated move.
When rate expectations shift, FX markets follow.
And that sets up a major dollar downtrend into 2025–2026.
FX Outlook: The 2026 Dollar Repricing
Based on the macro impulse from this FOMC meeting, here is the directional bias and the levels that now come into play:
EUR/USD → 1.20 (Mid-2026)
A structurally weaker dollar combined with a stabilizing European inflation cycle gives EUR/USD room to extend higher into its multi-year range ceiling.
GBP/USD → 1.35367 (Next Several Months)
The pound benefits from relative rate stability and improved UK data momentum. If U.S. easing accelerates, GBP becomes one of the cleanest anti-USD trades.
DXY → 98.00 (Early 2026)
A move back into the pre-2021 range is consistent with a soft-landing scenario and multiple Fed cuts. This is the key psychological level that aligns with broader macro structure.
USD/CAD → 1.30928 (Late 2026)
Canada’s balanced policy stance and stable growth path give CAD a durable advantage as U.S. yields drift meaningfully lower.
What This Really Means for Traders and Investors
This is not a short-term reaction trade.
This is a macro repricing — the kind that unfolds over months and quarters.
I will be positioning into these levels, not chasing them. Patience is required, and data will dictate timing — but the framework is clear:
The Fed just opened the door to a multi-year easing cycle.
Markets are underpricing it.
The dollar will adjust.
These are predictions, not guarantees, and macro conditions evolve. But the structural direction is now defined, and this FOMC meeting was the inflection point.
Fed Cuts, Treasuries Bounce, Dollar Slips FurtherGood morning traders! The Fed cut interest rates by 0.25% yesterday, marking the third straight cut. A few members dissented, showing the committee isn’t fully aligned. They proceeded with the cut as the job market continues to cool, even though inflation is still sticking around. The Fed also hinted this could be the last cut for a while and announced plans to start buying short-term Treasuries to keep liquidity stable. The US dollar remains under bearish pressure, while stocks hold steady, keeping the risk-on sentiment intact. This momentum could carry into year-end, we should just be aware of potential short-term pullbacks. USDollar Index - DXY remains nicely bearish, supported by 10Y US Treasury chart, as anticipated. If we consider that 10Y US Notes chart is now turning back to bullish mode, then DXY could easily see more weakness at least towards the open/unfilled GAP at 97.74 area.
THE DAILY DOLLAR UPDATE — FOMC VOLATILITY WINDOWThe U.S. Dollar enters today’s session under a clear volatility regime. FOMC sits at the center of the macro landscape, and the market is positioning early.
The dominant behavior is not directional aggression. It is information gathering. The Dollar is being pushed toward the weekly discount zone near 98.175, where a known liquidity pool sits. This is not organic weakness — it is deliberate positioning.
Order flow confirms this intent. Absorption shows up consistently at the .6–.7 Fibonacci bands, indicating institutions are unloading inventory into premium while sentiment remains fragile. Retail sees a slowing trend. Professionals see asymmetric preparation around a major macro catalyst.
Market Structure (MSM)
Internal bearish structure remains intact. Selling continues to dominate the internal leg, and structure is guiding price toward the weekly discount zone. No bullish regime shift is confirmed, and the architecture remains clean on the higher timeframes.
Dynamic Geometry (DGM)
Despite bearish pressure, the Dollar still trades inside an overpriced bullish dynamic condition relative to the weekly and daily POVs. This creates geometric tension: structure wants discount, geometry remains stretched in premium. When those two conflict, liquidity usually resolves the argument.
Volume Flow (VFA)
The next major volume POC sits in the mid-range and aligns directly with the liquidity low. Participation is not accumulating at highs; it is preparing to rotate downward. Volume acceptance at lower prices would confirm this shift, but for now, the market is in transition.
Order Flow Dynamics (OFD)
Order flow today is absorbed at premium levels. Large participants are distributing into the upper bands rather than allocating fresh long exposure. Sweeps are small, deliberate, and designed to clear short-term positioning across both sides of the range.
Precision Execution (PEM)
The broader downtrend remains intact. Deviations stay negative. These are traditionally favorable conditions for Dollar sells and cross-market rotations into strength.
However, execution must respect the macro backdrop. FOMC, year-end flows, and reduced liquidity can distort intraday structure. Stops must sit behind higher-timeframe pivots. Patience is discipline in a news-driven environment.
Macro Calendar — United States
• FOMC Statement
• Fed Rate Decision
• Press Conference with Chair Powell
• High-volatility window expected pre- and post-announcement
CORE5 Identity Line
We do not react to movement. We interpret intention.
Takeaway
The Dollar is not collapsing; it is being positioned. FOMC will determine who read the behavior correctly.
— CORE5DAN
Institutional Logic. Modern Technology. Real Freedom.
Somethings Off. Santa Clause Rally Ending In Sync w/Dollar Drop?Trading Fam,
Providing a quick update on a few new and alarming chart events and indications I am seeing. Usually, when the dollar drops, as long as the VIX remains low, stocks and crypto will rise. However, an anomaly is currently occurring on the charts. As stocks seem to be topping, the dollar is also testing major 17 year and 42 year support! I am not quite sure how to read this, but it seems that in this case, we could see stocks drop along with the dollar. How could this happen? Unknown. Could it have something to do with BRICS? Could it have something to do with the upcoming Fed decision? I honestly don't know how to answer this. I am simply just reading what the charts are showing me and telling you what it might mean for stocks and crypto.
Let's dive in!
✌️Stew
DXY, USDXDXY is currently approaching the support zone at $98. If this support holds strong and the price fails to break through $98, a rebound is possible. Consider buying in the red zone.
🔥Trading futures, forex, CFDs and stocks carries a risk of loss.
Please consider carefully whether such trading is suitable for you.
This content is not financial advice. Always conduct your own financial due diligence.
>>GooD Luck 😊
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DXY- A Move Is Loading…The U.S. Dollar Index is showing signs of a shallow corrective move within a broader weakening structure. Short-term upside attempts may remain limited while the overall flow continues to favor the downside, with a potential continuation once this correction concludes.
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