Dollar Index - Daily Timeframe - 26.08.2024
📊Buyers have been thrown out of the Table as all their orders have been consumed off by Sellers. Large institutions have failed to show interest in buying the Dollar this month of August seemingly allowing price to fall more than 3,240 Points creating the Lowest price level (100.530) since the Year 2024 started. The Open of the Year is 101.343. A clear indication that there have been massive sell-off since the month of April and June.
💡This Analysis will help us study the Demand chart profusely to find the Demand levels which are appealing to the Large institutions to place their Demand orders.
⚖️We expect the Demand orders to be place at 100.274, a strategic HTF demand level. Lower low can be formed with today's candle. Price might fail to tap in the Demand level reason; not to activate the buy limits as we expect a 3,000 Point buy back of lower price.
⚠️If Sellers push price lower, we expect Institution to buy back lower price levels at 99.058, a HTF demand zone
DXY BIG PICTURE
BULLISH THEME
Monetary policy dynamics should favor Dollar strength into the early part of next year
Softer growth outlook that will drive safe-haven flows towards the Dollar
Several factors support Dollar strength
Reasonably steady US economic trends and hawkish leaning Fed
Significant upgrades to for the next periods are set to keep US Dollar gains sustained
Markets featuring companies at the forefront of AI services could reinforce currency appreciation pressures
Slowdown in US inflation and growth is going to take a lot longer
When the dust settles, the Fed is set to continue raising rates
US to have permanently higher rates than elsewhere
Re-acceleration of inflation and its win over the Fed will continue to catch the market by surprise
The Dollar is higher for longer, alongside the Fed’s narrative
Stagflation to take USD even higher
Hot CPI means the Fed pivot is well beyond the horizon
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