USD Index (DXY) Analysis Bullish Outlook

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Fundametnal Analysis:
The US Dollar Index (DXY) is currently strong due to the high interest rate of 5.5% set by the Federal Reserve, steady GDP growth at 1.3%, manageable inflation at 3.4%, low unemployment at 4%, and robust consumer confidence at 69.1 points. These positive economic indicators attract foreign investment, bolstering the USD. Despite the trade deficit of -74.56 billion USD, the strong economic fundamentals support a resilient USD.

Tip: I think the Fed will hold rates due to uncertain inflation rises until the end of the year or next months. As long as the Fed maintains or increases rates with positive indicators such as NFP in the future, the USD will gain more strength against other currencies.

Technical Analysis:

After the positive NFP news, the price broke a strong bearish trend, indicating a potential shift in market sentiment. If the price remains above the critical level of 105, there is a high probability that the bullish momentum will continue. This could drive the price up to the 106 level, which is the previous month's high (PMH). Maintaining this level would reinforce the bullish outlook, suggesting further upward movement in the near term.

overall view

https://www.tradingview.com/x/JbiYQhoU/

From Strongets to Weakest Currency based on Fudametnal analysis

https://www.tradingview.com/x/HYWY4Mb0/
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🟥 Fed Interest Rate Decision Summary
The Federal Open Market Committee (FOMC) votes on the federal funds rate, a key factor in currency valuation.

Higher than Expected Rate: 🔼 Positive for USD

Indicates a strong economy.
Attracts foreign investment.
Boosts USD value.
Lower than Expected Rate: 🔽 Negative for USD

Suggests economic weakness.
Reduces foreign investment appeal.
Lowers USD value.
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"VIX"
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A rising VIX typically indicates increasing market uncertainty and fear, leading to a higher demand for safe-haven assets like the U.S. dollar, which could cause the DXY to appreciate. This "risk-off" sentiment often results in a stronger USD against currencies such as the EUR, GBP, and commodity currencies like the AUD, CAD, and NZD. The Japanese yen, also a safe-haven currency, might strengthen against the USD. Emerging market currencies could experience increased volatility and potential depreciation against the USD. Additionally, global equity markets often decline with rising VIX, further strengthening the USD due to its safe-haven status.
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