Dollar Index - Daily Timeframe - 26.08.2024
📊For the Last 2 Months, Sellers managed to push price levels to the Lowest Low in the Year 2024. 🔻5,806 Drop in price from the Highest price level. This Analysis will help us drive more into the Supply Chart to understand their Trading Path.
🧠A Very interesting knowledge to grasp from this Analysis is the current price level which is inside the HTF Supply zone (Proximal line- 100.652 & Distal line- 100.458)
⚖️Since the previous Base we saw a Continuation Pattern of DROP - BASE - DROP, at the current Supply zone being a BASE, We expect a Rally to be initiated due to Sellers taking profits off their Supply orders and Buyers taking advantage to push price Higher.
⚠️If Sellers fail to take all their Profits off the Sell Trades, Price might dip into the HTF Supply zone 99.798 which should record the Lowest Price level in the Year.
💡We expect a DROP - BASE - RALLY
DXY BIG PICTURE
USD BEARISH THEMES
Anticipated slowdown of the US economy
The hurdle for raising rates this month is higher, implying fresh US Dollar falls
Dollar weakness will pick up pace during 2024 as market attention turns toward Fed rate cuts
Fed feels more comfortable with receding inflation
US Dollar's position as the primary global reserve currency is being challenged
America on verge of losing petrodollar privilege
Other regions may need to continue their crusade for inflation, reducing spreads of debt securities yields
Combination of lower Fed rate expectations and improved risk sentiment is quintessentially negative
No more Fed hikes, potentially lethal to the US Dollar
US economy to slip into recession, Fed eventually cut rates quicker than peer institutions
Sticky inflation? What is sticky is the downtrend
Fed will start cutting interest rates quicker than foreign central banks
Backing the US disinflation process and lower US rates