While everyone bets against it — the dollar is getting stronger.
Despite bearish bets, the Fed stays firm, inflation ticks up to 2.7% (July 2025, US BLS), and Trump’s tariffs keep adding fuel.
📈 After bouncing from the 96 support and breaking a bearish RSI triangle, DXY is now eyeing the 104–106 liquidity zone — a hotspot for reversals or breakouts.
💡 Why it matters
– EURUSD and GBPUSD tend to fall as the dollar gains strength.
– USD-crosses like USDCAD and USDJPY often rise.
– Risk assets (stocks, emerging markets) may come under pressure.
📊 How to trade it
– Watch the DXY chart to find entry points — it’s your roadmap for USD strength.
– Buy USDCAD, USDJPY, USDCHF on pullbacks while price holds above the rising trendline and sell EURUSD, GBPUSD.
– Use extra tools like RSI, trendlines, or Fibonacci for better timing.
– When USDollar index (DXY) will reach 104–106 level, the dollar may face resistance. — be ready for a pullback or correction
– If price breaks the monthly support trendline, prepare for a potential downward trend.
This isn’t noise — it’s a setup in motion.