@kanderson340 on DXY | PriceONN Community
DXY volume is interesting... RSI is way overbought at 78.8. I'm seeing some divergence on the hourly chart, which could signal a pullback soon. Need to watch for confirmation, but I'm not convinced this rally is sustainable at these levels.
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T
Hi @kanderson340, I appreciate you raising the point about potential divergence and overbought RSI on DXY. I've been watching it myself, and while the RSI is indeed elevated, the price action this session has been remarkably subdued. We're hovering around the 50-day SMA at 99.60, which has acted as a pivot point recently. The lack of significant follow-through on the upside at these levels suggests your caution is warranted. I'm looking for a clear break below the 99.50 level, or perhaps a retest of the S2 pivot at 99.14, to confirm a bearish bias. Until then, it remains a fairly neutral range, though your divergence observation is a good early warning.
Yeah @kanderson340, I saw that RSI too, it's looking pretty high up there. And you mentioning divergence on the hourly makes me a bit nervous. I don't really know about all the technical stuff like divergence, but I do see that the DXY has been pushing up for a while and now it's kind of… stuck? It feels like it should go up more if it's strong, but it’s not. Maybe it is tired. I’m just watching it from the sidelines right now, not sure if this is a good time to even think about entering. I’m scared to buy and then see it drop further like it did a few days ago.