The Dollar’s About to Make a Big Move

The dollar is at yet another critical juncture, here’s where it could be headed next… [Jeff Clark's Market Minute]( The Dollar’s About to Make a Big Move By Imre Gams, analyst, Market Minute This year has so far been quite good for the dollar… The U.S. dollar index (DXY) is currently up 3.28% year-to-date. But it hasn’t exactly been smooth sailing. Along the way, the dollar has suffered through two periods of significant decline. The first was between February 14 and March 8. During this time, DXY declined by 2.49%. The second was between April 16 and May 16. This time, DXY declined by 2.29%. The first pullback in DXY led to a rally to new yearly highs. After DXY bottomed in March, the dollar went on to rally 4.06% So far, DXY has rallied 0.99% after the second pullback that ended on May 16. The big question is whether or not we’ll see another rally to new highs. The fundamental catalyst that will shape the dollar’s future will be the next major shift in policy from the Fed. Recommended Link [BREAKING: New “Formula” Could Lead to Huge AI Payouts]( [image]( Investors – including multiple billionaires – are now tapping into a unique AI secret to pocket huge, consistent payouts. Starting today, you could siphon a new stream of income from this $3 billion pool of cash. [Full story here.]( -- Going Up or Down Traders have been poring over economic data to try and figure out when the Fed will signal that it’s time to start lowering interest rates. And as I said last month, [much of that data has been a mixed bag](. It’s why although the dollar has been steadily rising this year, a lot of the trading has been very messy with big swings in both directions. And now, the dollar is at yet another critical juncture. It looks like we’ll either get another rally to new yearly highs… or a significant sell-off that will take DXY into negative territory for the year. I’ve prepared an updated chart of DXY below so we can be prepared for either scenario. [(Click here to expand image)]( The key feature of this chart is the parallel channel (blue lines) that’s contained the entirety of this year’s price action. Every time we get near the bottom of the channel, the possibility of a trend reversal heightens. A strong break below the channel would be an early warning signal that the uptrend in the dollar may now be at an end. On the other hand, so long as we stay within the channel, we shouldn’t rule out the possibility of further dollar strength. Free Trading Resources Have you checked out Jeff's free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career – at zero cost to you. Just [click here]( to check it out. Either way, the dollar seems to be on the cusp of another big move – either up or down. The smart thing to do right now is simply to wait… and let the market show its hand. If we get a breakdown out of the channel, then the direction of the dollar is likely lower. On the other hand, if we see a series of bullish trend continuation setups like bull flags and triangles, then we’ll likely see another new yearly high. Happy trading, [Signature] Imre Gams Analyst, Market Minute [Jeff Clark's Market Minute]( Jeff Clark Trader 55 NE 5th Avenue, Delray Beach, FL 33483 [www.jeffclarktrader.com]( To ensure our emails continue reaching your inbox, please [add our email address]( to your address book. This editorial email containing advertisements was sent to {EMAIL} because you subscribed to this service. To stop receiving these emails, click [here](. Jeff Clark Trader welcomes your feedback and questions. But please note: The law prohibits us from giving personalized advice. To contact Customer Service, call toll free Domestic/International: 1-800-752-0820, Mon–Fri, 9am–7pm ET, or email us [here](mailto:contactus@jeffclarktrader.com). © 2024 Omnia Research, LLC. All rights reserved. Any reproduction, copying, or redistribution of our content, in whole or in part, is prohibited without written permission from Omnia Research, LLC. [Privacy Policy]( | [Terms of Use](