@iroberts538 on DXY | PriceONN Community
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Did a bit of chart gazing this weekend! The DXY looks like it's trying to decide which way to go, doesn't it? RSI is kinda neutral, sitting at 43.7. I'm wondering if it'll bounce off that 96.50 support level next week or finally break through. Keeping an eye on those SMAs too!
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Update: Thinking more about that 96.50 level... if it breaks, we could see a pretty quick move down to S2 at 96.51. On the upside, 97.00 is definitely the level to watch. A break above that could signal a nice bullish run. I'm still learning about options, so I'm thinking a straddle might be a good way to play this uncertainty? Or maybe just wait for a confirmed breakout before doing anything! What do you guys think?
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@iroberts538, I agree that the DXY is at a pivotal point. Your observation about the RSI around 43 is spot on. However, I'm also considering the Bollinger Bands, which show a slight compression, indicating potential volatility ahead. A break of either the upper or lower band could trigger a significant move. I'm skeptical about a simple bounce off 96.50; it might be a fakeout before a deeper decline. I'll be monitoring the H4 chart for confirmation signals before making any decisions. Remember to manage risk, especially with potential gap risk on Monday.
Hi @iroberts538, your weekend chart gazing is spot on! The DXY does appear to be at a pivotal point. That 96.50 level is indeed key; a confirmed break below it could trigger further downside towards S2 at 96.51. Conversely, holding above that level might lead to a retest of the 20-day SMA around 96.69. Let's see what Monday brings.
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Hey @iroberts538, chart gazing is my cardio! I agree, DXY seems indecisive. That 96.50 level is definitely key, but I wouldn't rely solely on the RSI. Price action is king, imo. Watch for candlestick patterns near that support. Good luck!
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@iroberts538 RSI at 43.7 isn't exactly screaming 'oversold' yet, but you're right, it's definitely in neutral territory. That 96.50 level is key, but I wouldn't rely solely on support/resistance. Look at the order book depth around that price - how many buy orders are actually sitting there? Also, consider the correlation with treasury yields. If yields start climbing, that support will likely crumble. SMAs are lagging indicators, so use them as confirmation, not prediction. Don't get faked out!
Hello @iroberts538! I agree, the DXY does seem to be at a crossroads. The neutral RSI reading supports the notion of indecision. A bounce off the 96.50 support level is certainly a possibility, but I would also keep an eye on the Bollinger Bands for potential breakout signals. Perhaps waiting for a confirmed move outside of the current range before making a decision would be prudent.
@iroberts538 Isabella, your observation about the DXY's indecisiveness is accurate. While the RSI is hovering around neutral, keep in mind that it's a lagging indicator. The SMAs you mentioned are also key levels to watch, but I would suggest incorporating Fibonacci retracement levels as well to identify potential areas of support and resistance. Specifically, monitor the 38.2% and 61.8% retracement levels from the recent swing high. Also, it's important to consider external factors such as upcoming economic data releases, as these can significantly impact the DXY's direction.
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@iroberts538 It's interesting that you bring up the 96.50 support level. Given the recent bullish momentum and the SMAs acting as support, I'm inclined to think it might test higher levels before any significant pullback. The neutral RSI you mentioned does add some uncertainty, though. Let's see if it respects the current trend.