2022 has been one of the best performing years for DXY since inception. It's gigantic underrated strength has come as a result of Federal's Reserve policies trying to curb and bring down their 'Transitory Inflation' via increasing Interest Rates. The Federal Reserve raised the target range for the federal funds rate by 75 basis points to 3.75%-4% during its November 2022 meeting. It marks a sixth consecutive rate hike and the fourth straight three-quarter point increase, pushing borrowing costs to a new high since 2008 Thus far for 2022 INFLATION is barely coming down despite aggressive Rate Hikes that Feds have taken action upon. This is quite a TROUBLESHOOT for Feds, that aim for 2% Inflation target ; A Troubleshoot as well for Macro Economics and Geo Political spectrum, which I won't go further to discuss on this idea. M2 acted as an 'aid' to Support Pandemic's Health Crisis, a timeframe in which interest rates were put to zero 0% for almost two years, so markets had quite some fun times creating New All Time Highs one after another as DXY was dipping.
While those who took action and safeguarded their diminishing purchasing power by investing on various Financial Markets, Index Funds, Real Estate and various zones of investing; MANY more are being completely and utterly destroyed by High Inflation, especially those from countries outside Eurozone. Countries labelled as third world countries .
Employment interest anticipation of labor market in US, including overall anywhere in the parts of World, it's still lower than it's pre Pandemi's Highs! Meaning, not many people are interested to be employed; That due to : - stagnant wages not being raised based on inflation valuations - perhaps due to new trend of remote working that pandemic's lockdowns Highlighted.
Which ever may be the case, lots of things must change, otherwise US will lose it's primary mission that supports theoretically America, High Employment Rate that adjusts inflation to stay low .
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Zoomed in on *W
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Current Support at 109 (Daily Range Bottom Ceiling)
Supports Below 107-104
200EMA
101 confluencing with 0.619 Fibb Level aswell the White Support Trendline
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DXY breaking down the bullish flag pattern. Next look for support at 200EMA on the Daily TF (105.5)