Another 48h - Very Pretty Bullish DXY Price Action Chart Today

2025/01/08
Another 48h - Very Pretty Bullish DXY Price Action Chart Today
“dxy price action bullish fresh, like out from the fitness studio!
is that justified? what's the reason? bond market? if yes, why?”



He's not even in office yet and he already seems to be setting the headlines! Who? The former and/or future US President Donald Trump - who escalates and even does not rule out the use of force against Panama and/or Greenland! Is that why the stock markets DJIA & SP500 and/or NDX fell yesterday? The US10Y and/or also the DXY increased? I don't know! But yesterday I noticed, like all of us, that the prospect of falling interest rates is dwindling more and more - and or the left-green bubble here in the country where I was born and/or even my home country of Germany is experiencing the next setback. After Mark Zuckerberg announced the end of fact checking yesterday. Yesterday in my South-Eastern European fatherland, Croatia, there was an emotional, controversial presidential debate - like in all other debates in our so-called West.

Will the bulls counterattack today after yesterday's losses on the US stock markets DJIA & SP500 and/or NDX following "too hot" US data? Vice versa: Is the DXY and the US10Y falling? "The ISM Services PMI rose to 54.1 in December 2024 from 52.1 in November, above market expectations of 53.3. The reading marked the 10th time the composite index has been in expansion territory this year.", was published yesterday. And/Or at the same time "The number of job openings increased by 259,000 to 8,098 million in November 2024, from an upwardly revised 7,839 million in October and above market expectations of 7.70 million." Particular attention on WallStreet is now again focused on NVDA , because the price action initially reached a new all-time high yesterday, only to close at a daily low of more than -6%. A foretaste of what awaits us after Trump takes over as US President again on January 20, 2025! Because Trump, in turn, has toughened his tone towards the Fed - while in US foreign policy he is taking a tough stance on economic matters and is once again making a name for himself as a peacemaker in political matters. Why? Sure - that's what US taxpayers and US consumers voted for! His political legacy is already today - homeland first (domestic policy) and peaceful dealings with other states (foreign policy). Since the turn of the millennium, the USA has become the largest tax-financed debt organization in our human history, due to its military foreign adventures. Precisely their imagined good will to have to act in the world as a policeman of our so-called West - while the BRICS states grow and grow peacefully and non militarily.

“I wish I could write a book that will be read for as long as our civilization lasts... I would value it much more highly than any business success if I could contribute to an understanding of the world in which we live or, better yet, if I could help to preserve the economic and political system that has allowed me to flourish as a participant.”
George Soros

• Will there be a bullish breakout above the 2024 high?
  
• Or a bearish fall back below the annual high in 2023?

The answer to one of the two questions is important - one way or another - because we will either see a confirmation of the current upward trend in price action in the DXY ? And/Or a significant break in the current upward trend? If I am not mistaken, the current upward trend is driven by two main influencing factors: firstly, because it has been intact since the annual low in 2024 (technical analysis). And on the other hand, because the trend ran before, during, and/or even after the US presidential election (political scenario), namely Trump's re-election.


109.533 : 2025/01/02 - annual high 2025
109.378 : 2025/01/08 - today's intraday high
109.206 : 2025/01/03 - friday high (us trading)
109.059 : 2025/01/08 - last price action
108.583 : 2024/12/31 - Annual Year High 2024
108.753 : 2025/01/06 - monday high (intraday sell-off)
107.739 : 2024/12/30 - 2nd last low 2024
107.587 : 2024/12/20 - last low 2024
107.348 : 2023/10/03 - Annual Year High 2023
On Friday, January 10, 2024 - the day after tomorrow - US unemployment rate for December 2024 will be published. Tomorrow, Wall Street will be closed due to the funeral ceremony of the late US President Jimmy Carter. The price action in DXY looks exciting - tends to be bullish! Look at the chart? First we have the upward trend, since mid-December, i.e. the last two weeks of the past year 2024. At first,the last lowest low of 2024 with 107.587 points on 2024/12/20 - that was confirmed 10 days later with 107.739 points on 2024/12/30 as even the 2nd last low of 2024. A small, actually not special trend - relatively bullish, even tending to trend sideways. But the result is that at the beginning of the year the price action established itself above the annual highs of 2024 - 108.583 points on the last trading day on 2024/12/31. And/Or even above the annual year high of 2023 with 107.348 points from 2023/10/03. That's why this actuality scenario, from the technical pov (point of view) is so important! Because at the beginning of the year it may give us a foretaste of the upcoming year 2025. Because just as quickly as the price action rose in the first two days, it fell again - only to turn bullish again above the upward trend. And then in a W formation below the annual high in 2024! What? After the w trend reversal formation ended Wednesday trading yesterday above the 2024 annual high of 107.739 points, the price action even rose bullishly back up to the high from last Friday, with 109.206 points. Where the price action currently seems to be consolidating at 109.059 points!? Yes, the DXY screams buy buy buy, as I recently tried to describe in the big picture! But aren't we looking too far ahead? Don't want to anticipate the future too quickly? Let's stay today! Here too the chart seems to scream buy buy buy in the short term! Or? Why? “The bond market sets the rhythm!” a market commentator friend of mine from another cfd online broker told me today. "And that seems to signal that the US's fiscal policy and/or the economic scenario simply costs too much!", what i don't believe in! But it sounds plausible - and as long as I am thinking about it, it makes sense to me also. Because the US has simply lived above its costs in the last few decades - and the WallStreet only the magnificent 7 AAPL MSFT AMZN GOOGL META TSLA NVDA in the last few years have mainly driven the stock markets upwards. What I understand! But is that what is currently driving the price action? I don't know! But I know that based on the knowledge I have and/or just formulated, there is a greater probability that the DXY will tend to continue to rise slightly rather than fall - at least until Friday, ahead of the release of the US unemployment rate...


With best wishes
and good intentions:
Aaron



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