DXY: FED Gives $ Wings! 120.000 The Ideal Target

With DXY having broken a crucial supply zone/resistance @ 110.000, the road to 120.000 seems obstacle free speaking technically. On the other hand, looking at the fundamental picture, we can expect the FED to keep raising rates to tame the inflation. This would in turn as expected give value to the DXY and make it appreciate further thus sending other currencies tumbling.

Since the start of FED aggressive tightening cycle, the inflation is yet to come under complete control or plateau. Still running at a record high, it would take some time to bring it back under to the target of 2.4% per year. So as you can imagine during this time the FED would keep raising the rates or do it cautiously not at every meeting, as a result this would give more boost to the USD.

So taking both fundamental factors and technical ones into account we can expect a gradual rise in value of the DXY towards the next supply zone/ resistance located at 120.000. Look at the main chart for the trade entry details in order to achieve 1:1 RR. This trade is POSITION trading and will likely take a long time to develop its trend, however both fundamental and technical factors are strongly in favor of the DXY appreciation. Kindly avoid the trade if the target is HIT first as the trade would be invalidated.

Trade Cautiously & Safely. Cheers