#FedRateCutAffectsDollarTrend To identify a change in the U.S. dollar trend, focus on these key indicators: 1. Technical Analysis Break of Key Support/Resistance – If the USD breaks a long-term level, it signals a trend shift. Moving Averages (MA Crossover) – A short-term MA crossing a long-term MA (e.g., 50-day above 200-day) indicates trend change. RSI & MACD Divergence – Overbought/oversold levels or divergence suggest potential reversals. 2. Fundamental Analysis Fed Policy Shifts – A rate cut or hawkish/dovish Fed stance can change dollar direction. Inflation & Jobs Data – High inflation may lead to tightening (bullish USD), while weak employment data may signal easing (bearish USD). Geopolitical & Risk Sentiment – Crisis or uncertainty boosts USD as a safe haven, while risk-on sentiment weakens it. 3. Market Sentiment DXY Index Movement – A rising DXY suggests a strong dollar; a falling DXY suggests weakness. Positioning Data (COT Reports) – Shows how institutional traders are betting on the USD.