DOLLAR INDEX DAILY LINE CHART CLOSEU.S. Dollar Currency IndexTVC:DXYShavyfxhubDollar index Dxy,after critically observing the structure on weekly time frame ,it looks like dollar is pulling back based on the evidence on weekly line chart close of the structure,despite rate hold in the last FOMC (federal open market committee meeting voting 12-0 unanimously under the new fed chairman Kevin Warsh to keep rate at 3.5%-3.75%. Feds aggressive rate hike bet is fading gradually due to the current employment data outlook, The PCE ,fed preferred watch tools, employment ,non-farm employment ,cpi,core cpi statistics from BLS(department of Labour statistics will be weighted on case to case approach,fed will apply wait and see approach as the mandate remains bringing inflation to 2% . The Labour market growth and consumer confidence and spending will be watched ,followed by other Feds speaks commentary. If DOLLAR pull back into 99.500-100 zone look for demand on 4hr/3hr and stay on the current buy momentum, The structure for now is pointing towards 99.500 as next demand floor,the US10Y structure should be part of the broader analysis for buy continuation. If the next FOMC fails to increase rate ,then all GOLD,SILVER,EURUSD,GBPUSD,AUDUSD long position have worn a case on the priceaction.. Supplyroof at 104-105 will be final target if the demand momentum keeps the bullish trajectory it started with during the 17th June FOMC hawkish outlook. WHAT IS DXY??? DXY (also known as the US Dollar Index or USDX/“Dixie”) is a measure of the value of the United States dollar relative to a basket of six major foreign currencies.  What currencies are in the DXY basket? It uses a weighted geometric mean with these approximate weights (unchanged since the 1970s, with the euro replacing several European currencies): • Euro (EUR): ~57.6% • Japanese yen (JPY): ~13.6% • Pound sterling (GBP): ~11.9% • Canadian dollar (CAD): ~9.1% • Swedish krona (SEK): ~4.2% • Swiss franc (CHF): ~3.6%  The index was originally developed by the US Federal Reserve in 1973 and is now maintained by ICE (Intercontinental Exchange). A base value of 100 represents the dollar’s value in 1973; higher readings mean a stronger USD, and lower readings mean a weaker USD.  How does DXY affect gold? Gold and the DXY typically have a strong inverse (negative) correlation — often between -0.5 and -0.8 historically, though it is not perfect and can decouple at times (e.g., during extreme geopolitical crises or simultaneous safe-haven flows).  Key reasons for the inverse relationship: 1. Gold is priced in USD globally: When the dollar strengthens (DXY rises), it takes more foreign currency to buy the same amount of gold. This makes gold more expensive for international buyers, reducing demand and pressuring prices lower. Conversely, a weaker dollar (falling DXY) makes gold cheaper in other currencies, boosting demand and prices.  2. Competing safe-haven / reserve assets: Both the USD and gold serve as stores of value and hedges. A stronger dollar often signals confidence in the US economy or higher US interest rates (which attract capital to dollar assets), drawing investment away from gold. A weaker dollar can push investors toward gold as an alternative.  In simple terms: • Rising DXY → Stronger USD → Gold prices tend to fall. • Falling DXY → Weaker USD → Gold prices tend to rise.  This relationship holds over long periods but can be influenced by other factors like inflation, interest rates, geopolitical events, central bank gold buying, or stock market performance. For example, in some crises, both can rise temporarily if there’s broad risk aversion.  Every Trader and investors should watch DXY movements as a key driver for gold (XAU/USD) pricing. Dxy is trading compass ,don’t play with it. Summary;fed rate hike or hold will be data dependent, a technical wait and see approach,it won’t be on traders sentiment. #DOLLAR #DXY