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Tuesday, January 31, 2023

DXY Finds Key Level Support

The Dollar Index (DXY) is a measure of the value of the U.S. dollar relative to a basket of foreign currencies. It tracks the performance of its components, which include the Euro, Japanese Yen, British Pound, and so on.

When DXY moves up or down, it indicates that traders are buying or selling dollars against other currencies. For example, if it goes up then traders are buying more dollars with their other currencies and vice versa when it falls down in price.

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The USDX can be used as an indicator of economic trends because it shows how investors feel about America’s economy relative to other countries’ economies based on their investments/losses in different assets such as stocks or bonds issued by different companies in different countries around the world where these currencies are traded freely according to market dynamics rather than fixed exchange rates set by governments like currency boards do (e .g., Hong Kong dollar pegged at HK$7:USD1).

DXY To Support Bitcoin

The U.S. Dollar Index (DXY) is a measure of the dollar’s strength against a basket of six major currencies: the euro, pound sterling, Japanese yen, Canadian dollar, Swedish krona and Swiss franc.

The DXY began its decline after its most recent peak in October but has found support at $91 in recent weeks despite rising interest rates from the Federal Reserve (the central bank of the United States). This level has been tested twice since December 2018 by various market events—most recently by this week’s sharp drop in equity markets.

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Some analysts have attributed this resilience to a strong economic outlook for America that could suggest bullishness on further rate hikes from the Fed in 2019. Others say that it reflects growing concerns about global weakness caused by trade wars between China and other countries such as Japan or South Korea that are putting downward pressure on their currencies and thus driving up demand for dollars among investors seeking safe haven assets like bonds instead of stocks or commodities like oil priced in dollars themselves.”

Bitcoin has been on an upward trajectory since the beginning of 2019. The flagship cryptocurrency surged over the past month, breaking through $10,000 and then $11K before reaching a new all-time high at $17.2K. However, not everyone is convinced that BTC will be able to keep this momentum up as it faces resistance at another major threshold: $17K.

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