DXY — RESISTANCE (4H)
✍️ Several things have led to the current success of the DXY:
(1) The Bold Way the Federal Reserve Handles Money
Interest rates were raised four times by the Fed in 2022, and this is expected to happen again in 2023. Because of this, buyers are more interested in the US dollar because it has higher interest rates than other currencies.
(2) The Conflict in Ukraine
Investors have moved away from risky investments like stocks and commodities and toward the US dollar, which is seen as a "safe haven" currency.
(3) The Sentiment of the Economy
People think that the US economy will grow more slowly in 2023 than it did in 2022. This could make fewer people want to buy US goods and services, which could cause the US dollar to fall.
(4) A Global Recession
The global economy is being pushed around by things like rising prices, problems in the supply chain, and the ongoing situation in Ukraine. These problems could lead to an economic slowdown, which would hurt the value of the US dollar.
🤔 That being said, it's possible that Price Action will respect Resistance @ 1.0255 (4H), which would make the following pairs go up in our favor:
AUDUSD 📈 EURUSD 📈 NZDUSD 📈 GBPUSD 📈
✍️ Several things have led to the current success of the DXY:
(1) The Bold Way the Federal Reserve Handles Money
Interest rates were raised four times by the Fed in 2022, and this is expected to happen again in 2023. Because of this, buyers are more interested in the US dollar because it has higher interest rates than other currencies.
(2) The Conflict in Ukraine
Investors have moved away from risky investments like stocks and commodities and toward the US dollar, which is seen as a "safe haven" currency.
(3) The Sentiment of the Economy
People think that the US economy will grow more slowly in 2023 than it did in 2022. This could make fewer people want to buy US goods and services, which could cause the US dollar to fall.
(4) A Global Recession
The global economy is being pushed around by things like rising prices, problems in the supply chain, and the ongoing situation in Ukraine. These problems could lead to an economic slowdown, which would hurt the value of the US dollar.
🤔 That being said, it's possible that Price Action will respect Resistance @ 1.0255 (4H), which would make the following pairs go up in our favor:
AUDUSD 📈 EURUSD 📈 NZDUSD 📈 GBPUSD 📈
Professor C. E. Ward
