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Hi everyone! 👋 I'm still learning about the DXY and how it impacts other markets. Can someone explain in simple terms what the significance of the 50-day SMA is? I see it's around 97.47, and I'm not sure what that means for potential trades. Any insights would be super helpful! 🙏
Okay, so I did a little more research on my own and wanted to share what I found! 🤓 From what I understand, the 50-day SMA is basically the average price of the DXY over the last 50 days. If the current price is above the SMA, it *might* indicate an upward trend, and if it's below, a downward trend? 🤔
But I'm still confused about how reliable this is. Like, does it always work, or are there other things I should be looking at too? I saw someone mention RSI, and that's another thing I need to understand better. Any advice on using the 50-day SMA in combination with other indicators? Thanks! 😊