$DXY Holding The Keys to Risk for TVC:DXY by runyamhere

The $DXY finds itself in an interesting zone, the coming week has the FOMC, expect volatility in the markets. With the ECB raising rates more than expected, eyes turn onto the FED. The market is angling towards a pivot or a small cut given the turmoil in the banking sector. If early week the DXY breaks the support then it will be moving towards a daily cycle low, if it breaks higher then it will be seeking a daily cycle high before turning downwards. In these kinds of markets where emotions run high, I am reminded on Gold’s move July to August 2020, a short period we indulged in the emotions due to lack of skill, in these scenarios one must wait for dust to settle. If trading them small positions are better because these are trappy waters .

The rumour mill is full of conflicting information, there is talk of CBDC & the central banks want few big banks. If this is the case then they would opt to make the pain among small banks worse (raise rates for longer), this allows the small banks to be swallowed by the big banks achieving their goal. If the FED pivots now, commodities will run high, meaning more inflation coming. Hard being in Jerome Powell’s seat right now, bulls are cheering him to throw money at it for own reasons, but we shall see where things go, it will be an epic week.

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