The US Dollar index (DXY) gives us further insights across the general markets. I am aiming to send regular updates on day-to-day basis.
Traders and speculators are fully aware that the DXY index is a relative measure of strength value against six major currencies namely Euro, Pound, Yen, Canadian Dollar, Swedish Korner, and Swiss Franc. The index was created in 1973, but remains useful to this day.
Based on my observations, the DXY index is one of the tools that is useful to get trading confluences or confirmations from to help me on my trading decisions across the markets I speculate/trade with including Forex, Cryptocurrency, Stocks, Commodities and Indices. Although one must not fully rely on it and do utmost due diligence.
The US dollar index can be directly traded depending on the broker of your choice. Trading involves risk.
For the intraday, I am expecting the index to find support on 103.90-104.10 range if it cannot trade back inside the two 4H FVGs I drawn in the chart below.
The index just printed a new 82-day high as our immediate resistance confirmed by the double top candles shown. Switch to the daily chart to see the double top clearly.
On top of that, there’s also a huge 1D gap as massive resistance to be cleared first if dollar wants to go higher.
However, if price goes back inside the two 4H FVG territories especially if able to completely retrace the bearish FVG, then there’s a probability for a new high!
On fundamental side, the Greenback gained bullish momentum with no possible March rate cuts, strong NFP and unemployment data recently.
Next week will have CPI figures report and the index is still likely to have strong bids.
Full read here:
https://www.finlogix.com/analysis/20240207/us-dollar-dxy-index-intraday-analysis-for-february-7-2024
