The recent Fed interest rate decision has sent the markets into a bullish frenzy. The Federal Reserve raised interest rates by 25 basis points to 4.75%, but despite this hike, Fed Chair Jerome Powell was overall optimistic about the state of the economy. This positive outlook has lifted investor confidence and sent the markets higher.
However, the DXY (U.S. Dollar Index) is at a critical point, hovering at the 100WMA (100-week moving average) and on the verge of deciding its direction. At the moment, the DXY is showing signs of weakness, and if it drops to the next support level of 98, it could lead to a significant drop in the value of the dollar. This could have a bullish effect on all markets, including stocks and crypto.
In addition to the DXY's current state, other indicators are also pointing towards bearish conditions for the dollar. The monthly MACD (moving average convergence divergence) has recently crossed below the zero line and is now showing a red histogram, a bearish signal. The stochastic indicators, which measure overbought and oversold conditions, are also bearish and have plenty of room to fall before becoming oversold on the monthly chart.
All of these factors combined paint a bullish picture for the markets, as long as the DXY continues to weaken and drops to its next support level at 98. Investors should keep an eye on the DXY and other indicators as they may provide valuable insights into market movements in the coming weeks and months
However, the DXY (U.S. Dollar Index) is at a critical point, hovering at the 100WMA (100-week moving average) and on the verge of deciding its direction. At the moment, the DXY is showing signs of weakness, and if it drops to the next support level of 98, it could lead to a significant drop in the value of the dollar. This could have a bullish effect on all markets, including stocks and crypto.
In addition to the DXY's current state, other indicators are also pointing towards bearish conditions for the dollar. The monthly MACD (moving average convergence divergence) has recently crossed below the zero line and is now showing a red histogram, a bearish signal. The stochastic indicators, which measure overbought and oversold conditions, are also bearish and have plenty of room to fall before becoming oversold on the monthly chart.
All of these factors combined paint a bullish picture for the markets, as long as the DXY continues to weaken and drops to its next support level at 98. Investors should keep an eye on the DXY and other indicators as they may provide valuable insights into market movements in the coming weeks and months