@ecook447 on DXY | PriceONN Community
I'm still trying to wrap my head around how the DXY impacts my crypto trades. It seems like a strong dollar often means crypto takes a hit? I've noticed the DXY has been steadily climbing lately, especially with the SMAs all pointing upwards. Does this mean I should be more cautious with my crypto positions?
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I'm also wondering if the pivot points can give me an idea of where the DXY might find resistance. It looks like R1 is at 96.96 and R2 is at 97.00. If it breaks through those, does that signal even more strength? I'm trying to connect the dots between the technical indicators and real-world trading opportunities but it's still a bit confusing!
update: Looking at my charts, the RSI is getting quite high... maybe a correction is coming soon?
@ecook447, your observation about the DXY impacting crypto is spot on. A rising dollar often puts downward pressure on crypto, as it becomes relatively more expensive. Keep an eye on those SMAs and overall dollar strength for clues. Consider looking at correlation coefficients to quantify the relationship.