*SMC* DXY correlated with US02Y Bonds
As we can see on the daily tf, DXY has created Relative Equal High at 105.459 which translate to this level being a liquidity pool. We are likely to see 105.459 being taken out put where can it go? As we can see, above 105.459, the closer PDArray is the OrderBlock (made the 30 Apr) which confluate with the 75% of the Dealing Range and another buyside liquidity pool at 105.742. I dont expect DXY to trade above the mean threshold of the OrderBlock and if it touched I expect a strong reaction to the downside.
Concerning the 02 year Bonds, the body has respected the OrderBlock (30 Apr) creating relative equal low which has been taken out (june 12). There is a ''crack'' in correlation right now between the DXY and the major Bonds of the US which leads me to think that there is a higher probability for the DXY to follow the Bound and drop lower.
Fundamentally, Powell has been pointing out the progress that has been made (which could eventually lead to a cut of rates) However, the ''Dot Plot'' surprised the market of a likely to only 1 cut this year instead of 2-3 rate cut priced-in, which could be the reason why DXY has been going higher the last couple of days.
Concerning the 02 year Bonds, the body has respected the OrderBlock (30 Apr) creating relative equal low which has been taken out (june 12). There is a ''crack'' in correlation right now between the DXY and the major Bonds of the US which leads me to think that there is a higher probability for the DXY to follow the Bound and drop lower.
Fundamentally, Powell has been pointing out the progress that has been made (which could eventually lead to a cut of rates) However, the ''Dot Plot'' surprised the market of a likely to only 1 cut this year instead of 2-3 rate cut priced-in, which could be the reason why DXY has been going higher the last couple of days.