DXY SHORTS | 9SEPT Price failed to hold above resistance — strong sign of supply in control ⚡.
Intraday structure shifting bearish below 97.400.
Minor LQC + demand point marked — a confirmed close below supports further downside.
⚡ Trade Summary:
This is a continuation play following the first trade idea. The rejection confirms bears are stepping in, aligning with higher timeframe momentum. Short positions below 97.400 remain valid, targeting 97.100.
Market insights
DXY countertrend play | 9 SEPT📌 Key Observations:
Asian session highs swept ➡️ liquidity grab complete.
Price reacted from resistance zone (97.470 – 97.576) 🟦.
Minor LQC marked — a close below this level confirms bearish continuation.
🎯 Targets:
First downside target: 97.300 (intra-day liquidity pocket).
Main target: 97.100 🔽.
⛔ Invalidation:
A clean break & hold above 97.576 would shift bias back to bullish intraday.
⚡ Trade Summary:
Looking for short opportunities after this liquidity sweep, aligned with overall bearish momentum. A confirmed rejection from resistance strengthens the short setup. Patience is key — wait for candlestick confirmation before entry.
US Dollar & FED’s Final Choice: All Possible Scenarios The end of 2025 is shaping up to be decisive for the US dollar. After two years marked by persistent inflation and a slowdown in the labor market, the Federal Reserve (Fed) faces a crucial choice: maintain its current policy or initiate a monetary pivot. Depending on the chosen trajectory, the consequences for the US dollar (measured by the DXY index) could be diametrically opposed. Five main scenarios outline the full range of possible outcomes.
No Pivot: Status Quo until 2026
In this scenario, the Fed keeps its policy rate unchanged throughout 2025. Inflation, stuck around 3%, prevents any easing. The key meetings in September, October, and December would therefore result in a status quo.
The impact on the FX market would be clear: a strong bullish recovery of the US dollar against major currencies. After being one of the weakest currencies in the FX market, the greenback would regain strength, supported by a favorable rate differential. Technically, a move above 100/101 points would validate this bullish reversal hypothesis.
Technical Pivot to Adjust the Labor Market
Here, the Fed proceeds with a one-off rate cut in September or October, motivated by a weakening labor market. However, it does not initiate a broader easing cycle due to still-high inflation.
This type of pivot, described as “hawkish,” would anchor the DXY around 100 points, corresponding to levels seen in spring and summer 2025. The dollar would therefore remain stable, perhaps with a slight upward bias, without a clear downward trend.
Real and Healthy Pivot: Disinflation Confirmed, Labor Market Under Control
A more balanced scenario would see the Fed launching a genuine pivot, paving the way for a series of rate cuts starting September 17. Prerequisites would be in place: inflation near 2% and a stabilized labor market.
In this case, the impact would be bearish for the dollar. The downward trend, in place since early 2025, would continue. However, since this trend is already well advanced, the downside potential could be limited to the 94–95 zone on the DXY. In other words, moderate but contained pressure.
Real but Unhealthy Pivot: Sticky Inflation, Deteriorating Employment
This hypothesis combines inflation still close to 3% (notably due to tariffs) with a clear deterioration in the labor market. The Fed would be forced to begin a series of rate cuts, not out of macroeconomic comfort but to try to support activity and employment.
The risk of a US recession would intensify, forcing the Fed to act quickly. The effect on the dollar would be pronounced: a prolonged slide towards the lows of 2021, driven by falling rates and heightened perceptions of economic weakness.
Emergency Fed PUT: Surging Unemployment and Confirmed Recession
Finally, in the most extreme scenario, the US economy would enter a full recession with a sharp rise in unemployment. The Fed would intervene forcefully with massive and rapid rate cuts, confirming the seriousness of the situation.
The dollar would respond with a steep plunge, potentially falling back to its 2018 lows. This would reflect investors’ loss of confidence in the resilience of the US economy.
The chart below shows the weekly candlesticks of the US Dollar (DXY).
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Fibonacci confluence signals bullish reversalUS Dollar Index (DXY) is falling towards the pivot and could bounce to the 1st resistance.
Pivot: 97.17
1st Support: 96.75
1st Resistance: 97.86
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.
Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, are intended only to be informative, is not an advice nor a recommendation, nor research, or a record of our trading prices, or an offer of, or solicitation for a transaction in any financial instrument and thus should not be treated as such. The information provided does not involve any specific investment objectives, financial situation and needs of any specific person who may receive it. Please be aware, that past performance is not a reliable indicator of future performance and/or results. Past Performance or Forward-looking scenarios based upon the reasonable beliefs of the third-party provider are not a guarantee of future performance. Actual results may differ materially from those anticipated in forward-looking or past performance statements. IC Markets makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or any information supplied by any third-party.
Correct analysis and continuation of the trendAs we mentioned in the previous analysis, the price hit resistance and dropped again.
As you know, major news starts from Wednesday, and until then there’s no significant news for the Dollar Index. Most likely, the price will continue its decline toward the 97.150 area, reaching a key support level. There’s also a strong possibility that if the news comes out in favor of the dollar, we could see a powerful rebound from that zone.
DXY Analysis – Are Bad News Already Priced In?Since Trump entered the White House, the U.S. Dollar has taken a hard hit against its major counterparts, losing more than 10% overall.
But looking closer at the chart, we see a different story: since the April low around 97.80, the DXY has been stuck in a range-bound pattern, with the exception of July’s dip that was quickly reversed.
Lately, the USD has faced strong headwinds:
• Two weak NFP reports in a row.
• The Fed hinting at rate cuts.
• A constant flow of bearish headlines.
And yet, the Dollar did not collapse to fresh lows — instead, it simply revisited the same levels as before. This is a classic market signal that bad news may already be priced in.
From a technical standpoint, August was nothing but an annoying tight range:
• Support around 97.50.
• Resistance near 98.50.
Now, although the index looks like it’s breaking lower, I suspect this is another false breakdown, one that could be reversed quickly. If that plays out, the stage is set for a push higher — potentially to the 100 zone, a clean 3% rise from current levels.
Such a move would naturally translate into pressure on the majors:
• EUR/USD could slide back toward 1.14.
• GBP/USD could retreat near 1.35.
For now, I’m watching closely for reversal signals. The market has punished the USD for months, but if sellers are exhausted, the Dollar may surprise to the upside. 🚀
DXY Daily TF Consolidation Pending a Major BreakoutPrice has been ranging between a daily resistance and demand zone since the beginning of August. Another bounce in the demand zone this week will take price back to the resistance zone and if the resistance zone continues to hold then we short back to demand.
However, should resistance break, then the next target will be in daily supply. CPI should give us a better indication of should we get a break of this consolidation.
Personally I am leaning towards a bullish dollar for the short-term foreseeable future.
DXY Analysis – August 31, 2025In our past two weekly analyses, we highlighted the 98.00 zone as a key reversal area for the Dollar Index (DXY).
Once again, during the last week, price reacted to this level and started another bearish move.
📉 The recent candlestick structure suggests that sellers are still in control, but to fully confirm downside momentum, we need at least a daily close below 97.00.
🔻 If that happens this week, the index could gradually head toward our next downside targets at 96.00 and 95.00.
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.
Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, are intended only to be informative, is not an advice nor a recommendation, nor research, or a record of our trading prices, or an offer of, or solicitation for a transaction in any financial instrument and thus should not be treated as such. The information provided does not involve any specific investment objectives, financial situation and needs of any specific person who may receive it. Please be aware, that past performance is not a reliable indicator of future performance and/or results. Past Performance or Forward-looking scenarios based upon the reasonable beliefs of the third-party provider are not a guarantee of future performance. Actual results may differ materially from those anticipated in forward-looking or past performance statements. IC Markets makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or any information supplied by any third-party.
DOLLAR INDEX (DXY)...one of the most important tools for a tradeHello TradingView community! Joseph here, just wanted to share some nuggets on the Dollar Index and how it has helped me in my personal trading and profitability in the markets.
In the video I go over
1. The significance of the USD in the markets
2. How using the USD index is necessary for correlation (multi-asset even)
3. How to use the USD index to help better time your own trades in the markets
So sit back, grab your notebook and take some notes because this information WILL help give you an immediate higher chance of success if applied!! Thanks for watching please boost/comment/follow my page for more trading nuggets!
Cheers!
US Dollar: Still Bearish-Neutral, But Is The Correction Ending?Welcome back to the Weekly Forex Forecast for the week of Sept 8-12th.
In this video, we will analyze the following FX market: USD Dollar
The USD is still grinding sideways, but it did sweep the low of the consolidation Friday on bad NFP numbers. Worth mentioning is it finally made contact with a significant demand zone as well. As bearish-neutral as the DXY has looked over the past several weeks, there is potential here that if has finally found support for higher prices.
As long as the market maintains the protected low, we are still in correction territory. The potential for a move higher remains.
React and do not predict.
Enjoy!
May profits be upon you.
Leave any questions or comments in the comment section.
I appreciate any feedback from my viewers!
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MY POSSIBLE 3 OPTIONS FOR THE DXY NEXT WEEKTrading week 08 - 12 SEPTEMBER 2025
On Friday last week poor USD NFP readings caused a strong selloff of the Index however this didn’t leave the consolidating channel and we saw a re-bounce from 97.500 area of support.
This week a selloff in the 98.054 area could see the index testing the lower lows 96.700 and 96.470; if 98.054 is broken the next levels I will monitor are 98.300 and 98.743 as possible selloff entries. If the price breaks these levels and reaches 99.200 we could see more uptrend the DXY rallying to the 99.900 level of resistance.
U.S. Dollar Index (DXY) Outlook | Gold (XAU/USD) Correlation📈 U.S. Dollar Index (DXY) at Key Support | 🪙 Gold at Record Highs
🔎 Quick Summary:
• DXY holding 97.70 support inside a descending channel.
• A rebound could push it back toward 98.25 – 98.50.
• Meanwhile, Gold is sitting near $3,600/oz, at all-time highs, fueled by safe-haven demand and central bank buying.
• The DXY’s next move will help decide if Gold keeps climbing or pauses.
⸻
💵 U.S. Dollar Index (DXY) Outlook
On the 4H chart, the Dollar Index remains inside a descending channel. It has been forming lower highs and lower lows, yet the 97.70 level has repeatedly held as strong support.
• 🔹 Buyers are defending this zone, showing demand.
• 🔹 A rebound could take price back to the 98.25 – 98.50 supply zone.
• 🔹 A breakout above 98.50 would be significant, opening room toward 99.00+.
This makes the 97.70 region a critical turning point for DXY.
⸻
🪙 Gold (XAU/USD) Context
Gold is trading at record highs around $3,600/oz 🚀 — a level never seen before.
• 🌍 Central banks continue to accumulate gold aggressively.
• 🏦 Expectations of Fed rate cuts reduce the opportunity cost of holding gold.
• ⚖️ Persistent economic and geopolitical uncertainty is fueling safe-haven demand.
Correlation with DXY:
• 📉 If the Dollar rebounds, Gold could slow down or consolidate after its massive rally.
• 📈 If the Dollar breaks below support, Gold could see further upside, possibly testing higher targets near $3,700/oz and beyond.
⸻
📊 Conclusion
The Dollar Index is sitting at make-or-break support. A bounce would show Dollar strength and may cool off Gold’s rally. But if DXY weakens further, Gold could extend its surge into new record territory.
At this point, Gold remains the undisputed leader in the market, with DXY’s next move likely deciding how fast momentum continues.
⸻
⚡ Summary in one line:
💵 DXY at critical support — 🪙 Gold shining at record highs, waiting for the Dollar’s next move.
DXY Will Go Up! Long!
Please, check our technical outlook for DXY.
Time Frame: 1D
Current Trend: Bullish
Sentiment: Oversold (based on 7-period RSI)
Forecast: Bullish
The market is trading around a solid horizontal structure 97.736.
The above observations make me that the market will inevitably achieve 99.022 level.
P.S
Overbought describes a period of time where there has been a significant and consistent upward move in price over a period of time without much pullback.
Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
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DXY monthly chart ... bullish aheadDXY monthly chart trading at 97.300- according to channel shows DXY current price is at its cruicial support if it breaks may reach to 200 month EMA i.e. 91.864. As per previous pattern behavior it should reverse from here. If it crosses 100 month EMA i.e. @ 98.511 then price will touches to 50 month EMA 101.253 very soon. This month is only for buyers.
Dollar Index - How Low Can We Really Go?The U.S. dollar is having the kind of year that makes you check if someone switched its medication — down about 10% so far in 2025, its worst showing since Richard Nixon murdered the gold standard.
Momentum traders had a field day this week with low resistance from 98.100 to 97.500 within one trading session.
This draw towards sell side liquidity was covered in the previous analysis and if you participated in the short play this week, you should be proud of yourself!
GBPUSD and EURUSD (the only 2 FX pairs I track) rallied on dollar weakness, targeting premium arrays on the 1-hour timeframe.
Although my overall bias for dollar index is bearish which will provide risk on scenarios, it does not mean every single week will print limit down. Retracements are expected. For this reason, I am playing it safe by being neutral.






















