2022/08/21 (059) Technical Analysis – DXY

USollar Index Manifested A Trend-Reversal-Formation Last Week,
So That We Can Assume New Yearly Highs 2022 Next Weeks.
We Let Our 4XSetUp Go! Wait For New Entries…


“The U.S. dollar is again on the front foot this morning supported by another round of hawkish Fed speak … the overall tone of Fed officials suggests that the Fed still has a lot of work to do to contain inflation,” said Jane Foley, head of FX strategy at Rabobank in London. While St. Louis Fed President James Bullard, San Francisco Fed colleague Mary Daly and Kansas City Fed President Esther George all said continuing to hike rates in a bid to fight inflation would be reasonable. Weakening Chinese data last week and an energy crisis in Europe are raising fears of further economic slowdown, not only in the us economy – much more in the eurozone. So that European currencies and supported safe-haven flows, Foley added. “We expect another break below parity,” she said. It will be a busy week in the US with Jerome Powell’s speech at the Jackson Hole symposium taking central stage followed by several data releases including personal income and spending, durable goods orders, new home sales, and the second Q2 GDP growth estimate. Also, flash PMIs for August will be published for the US, the UK, Australia, Germany, France, and Japan. Finally, investors will closely follow the monetary policy meeting in China, South Korea, and Indonesia.

                                      The Most Important Higher-Level Prizes


108.638        07/13/2022    intraday high; yearly high 2022
108.103       08/19/2022    last close @ friday, the 19th august 2022

107.477      07/13/2022    intraday low; day before provisional yearly high 2022 in july
107.426     07/22/2022     intraday high; false break-out, after yearly high 2022
107.359      07/22/2022        intraday high; 1st well-balanced day, after yearly high 2022

106.943        08/16/2022    intraday high; 1st well-balanced day, after lows, after yearly high 2022    
106.930        08/05/2022    intraday low; provisional new low, after yearly high 2022
106.318       08/16/2022     intraday low; 1st well-balanced day, after lows, after yearly high 2022    
106.112       07/22/2022     intraday low; 1st well-balanced day, after yearly high 2022

105.788      06/15/2022     intraday high; provisional new yearly high 2022 in june
105.652       06/14/2022    intraday high; day before provisional yearly high 2022 in june
105.493         06/16/2022     intraday high; day after provisional yearly high 2022 in june
105.285     06/13/2022     intraday high; 2nd day before provisional yearly high 2022 in june
105.241     08/01/2022    intraday low; new low after well-balanced day & yearly high 2022
105.049    08/02/2022    intraday low; new low after well-balanced day & yearly high 2022
105.005    05/13/2022    intraday high; provisional new yearly high 2022 in may

104.925    05/12/2022    intraday high; day before provisional yearly high 2022 in may
104.646    08/11/2022       intraday low; day after, provisional new low, after yearly high 2022
104.643    05/16/2022    intraday high; day after provisional yearly high 2022 in may
104.636    08/10/2022    intraday low; provisional new low, after yearly high 2022

104.000     02/14/2022    stop price of this 4XSetUps trading capability

96.000        02/14/2022    entry price of this 4XSetUps trading capability

These are the most important price levels about the USD Index. I deliberately chose only the price development on a daily basis. And in doing so, I then considered new highs again andagain in detail; so to speak, when the market has run out of air. So if the financial market participants stopped buying the USD in the short term. Have opted for a few days of sale. In order to then buy it again in the medium term. Basically, the technical chart looks better than I could have ever imagined. But don’t fall into euphoria. Because the rally is on shaky ground. Because the market’s interpretation of central bank policy, i.e. the majority of foreign exchange investors and traders, sets the direction. And which in turn is extremely dependent on US economic figures. If you believe the words of the FED members. What I do…

US 10-Year Bond Yield Hits Four-Week High

The yield on the 10-year US Treasury note topped 3%, a level not seen in a month, as investors reassessed the outlook for monetary policy following hawkish remarks from several Fed policymakers. Louis Fed President James Bullard echoed the Fed’s intention to tighter monetary policy, leaning towards favoring another 75 bps hike in September. San Francisco Federal Reserve President Mary Daly highlighted the need to push interest rates to the restrictive territory to bring inflation down to its 2% target. Market moves came after minutes from the last Federal Reserve meeting signaled that a dovish pivot is unlikely until such an aggressive tightening would drag on growth.

Dollar Resumes The Rally

The dollar Index hovered above 108 on Friday, approaching a 20-year high of 108.5 hit in July, and was up about 2% so far this week, lifted by hawkish remarks from Federal Reserve officials indicating their commitment to further interest rates hikes. In the latest central bank commentary, St. Louis Fed President James Bullard said he is considering support for a third straight 75-basis point rate hike in September and said he is not ready to say the economy has seen the worst of the inflation surge. San Francisco Fed President Mary Daly also highlighted the need to push interest rates into the restrictive territory, while Kansas City Fed President Esther George said she and her colleagues will not stop tightening policy until they are “completely convinced” that overheated inflation is coming down. Traders will get more insights from Fed Chair Jerome Powell at next week’s annual Jackson Hole symposium.