EXY vs DXY: Early Signs of a Long-Term Rotation Into the USD

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EXY vs DXY: Early Signs of a Long-Term Rotation Into the USDEuro Currency IndexTVC:EXYOpenYourMind1318With the crypto market remaining quiet, I decided to shift my attention to the FX market and analyze the relationship between the Euro Index (EXY) and the U.S. Dollar Index (DXY). This is a monthly timeframe analysis, so I am not looking for a short-term move. If this scenario plays out, this potential capital rotation could develop over several months. What I see on the chart MACD has already confirmed a bearish crossover. The MACD line has crossed below the signal line, while the histogram has moved into negative territory, suggesting that bullish momentum on EXY is weakening. EXY remains within a long-term bearish structure. Despite the recent recovery, price has reached a major resistance area where sellers are starting to regain control. DXY is holding a key support zone. If the Dollar Index confirms a reversal from this area, it could become another signal for renewed USD strength. Inverse correlation between EXY and DXY. Historically, periods of Dollar strength have often been accompanied by Euro weakness. The current setup suggests that this relationship may be entering another important phase. My Scenario At the moment, I believe the market may be showing the early signs of a long-term capital rotation toward the U.S. Dollar. If this scenario is confirmed, I expect further strength in DXY and continued weakness in EXY. Since this analysis is based on the monthly timeframe, the move could develop gradually and take several months to unfold. *not financial advice*