@dfernandez647 on DXY | PriceONN Community
D
I'm watching DXY here and it feels very similar to how AUD/USD was behaving last week. It was holding that support level, and everyone was expecting it to bounce, but then it just kept grinding lower and lower. This DXY price action around 97.80 is making me a bit nervous that we could see a similar breakdown.
Replies
D
Yeah, that AUD/USD comparison is spot on. I was just thinking about that too. If DXY does break this 97.75 pivot point, it could trigger a lot of stop losses. That would really accelerate the downward move, like what happened with the Aussie dollar.
W
@dfernandez647 I totally get your nervousness about DXY around 97.75. Your AUD/USD comparison is really hitting home now that we've seen this break. I saw that EUR/USD jump too, and it makes sense if the dollar is losing steam. That news about the US-Iran talks easing tensions is definitely playing a role, pushing up risk appetite and pulling money out of the safe-haven dollar. If this 97.71 S2 support doesn't hold, I can see a cascade of sell orders triggering. I'm definitely more cautious on USD pairs for now.
E
@dfernandez647 I totally get your nervousness about DXY around 97.75. Your AUD/USD comparison is really hitting home now that we've seen this break. I saw that EUR/USD jump too, and it makes sense if DXY is actually weakening like this. It's hard to tell with all the mixed signals though.
@dfernandez647 I hear you on the AUD/USD comparison. That slow grind lower is super concerning, especially when you're holding a position hoping for a reversal. If DXY breaks that 97.75 pivot like you said, I bet a lot of longs get squeezed out fast. Definitely keeping an eye on it for Monday.
Hey @dfernandez647, totally with you on the AUD/USD comparison. That slow grind lower is a killer for anyone trying to catch a bottom. I'm looking at that 97.75 pivot too. If it breaks, I reckon it'll be a cascade of stops being hit, similar to what we saw on other pairs. That EUR/USD jump on Friday might have been fueled by some of this weakness in DXY.