DXY Trading Idea: Leveraging USD Weakness - Analysis

4天前

Macro Analysis and COT Data
The current market conditions indicate that the US Dollar (USD) is trading weaker against other currencies. This sentiment is supported by the Commitment of Traders (COT) Report, which shows that non-commercial traders (speculators) have significantly increased their net short positions in the US Dollar Index (DXY). This positioning reflects a bearish outlook on the USD, which is being mirrored in current price action.

Key factors driving USD weakness include:

Market Structure Shift (MSS) in various USD currency pairs, signaling a bearish momentum.
Technical resistance zones such as order blocks and fair value gaps (FVGs), which are serving as catalysts for selling pressure.
Large traders' positioning, which points to a continuation of USD depreciation.
Technical Analysis (DXY and USD Currency Pairs)
The analysis of the DXY (US Dollar Index) reveals a clear bearish structure:

The price has completed an ABC correction, where wave B represents a bullish retracement, and wave C signals a selloff towards the support zones at 102.42–102.00.
Fibonacci levels and a lower-order block suggest a strong bearish trend, which is also evident across major USD currency pairs.