\ud83d\udcca DXY’s 2024-2025 Rally Resembles 2015-2017 Pattern
- The U.S. Dollar Index (DXY) has surged 6.32% since the 2024 U.S. election, breaking a two-year range.
- Bank of America’s Paul Ciana suggests that DXY could peak in Q1 2025, resembling its 2015-2017 trajectory.
- If DXY fails to break above 110-112.50, a market top could be forming.
\ud83d\udccc Historical Context (2015-2017)
- DXY peaked in January 2017 at 103.82, forming a head and shoulders top before a prolonged decline.
- Similar movement in 2025 could signal a reversal after recent strength.
\ud83d\udcc8 Potential Scenarios for DXY
1️⃣ Bullish Case:
- If DXY surpasses 112.50, it could retest 114, last seen in 2022.
2️⃣ Bearish Case:
- A failure near 108.50-110 could confirm a double top formation.
- A downward move would mirror the post-2016 election pattern, leading to a potential decline.
\ud83d\udca1 Key Technical Levels:
- Support: 108.50 (Lower High)
- Resistance: 110, 112.50, 114 (Potential Upside Targets)
\ud83d\udd17 Related Financial Data
\ud83d\udd11 Key Takeaways
\u2714 DXY’s rally mirrors the 2015-2017 cycle, suggesting a possible Q1 2025 peak.
\u2714 A failure to surpass 110-112.50 could confirm a double top, signaling reversal.
\u2714 Traders should monitor DXY’s movement closely, as breaking 114 could shift the trend bullish.
