@manJames53 on DXY | PriceONN Community
This DXY action tonight is really confusing. We're trading below the 20-period SMA on the hourly, which suggests some bearish pressure, and the RSI is sitting around 44, not exactly screaming overbought or oversold. Yet, it feels like we're just churning around that 99.17 pivot point without any real conviction either way. I'm struggling to reconcile the slight downward bias with the lack of follow-through.
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And to add to the confusion, the 200-period SMA is still way down at 99.00. This means that even with the current price action, we're technically still in a longer-term bullish trend according to that longer timeframe average. It's a real head-scratcher when you have short-term indicators suggesting weakness but longer-term averages pointing to strength. I'm going to keep an eye on that 99.00 level; if it breaks decisively, then maybe the bearish sentiment will gain more traction.
Looking closer at the hourly chart, the Bollinger Bands are tightening up considerably, which usually precedes a significant move, but the direction remains unclear. The fact that we bounced off S2 at 99.09 earlier suggests some buyers are still lurking, but then we failed to hold above the R1 pivot at 99.23. It's like the market can't decide if the recent dip is a buying opportunity or the start of a deeper correction. I'm reviewing the news on geopolitical tensions affecting commodities like gold, as per, and trying to see if that's indirectly impacting the dollar's sentiment, but the correlation isn't straightforward tonight. It's a classic case of conflicting indicators and market indecision. I need to see a clear break of either the S2 or R2 level with conviction before committing to a directional trade.
B
Hey @manJames53, I totally get what you mean about the Bollinger Bands tightening. It's like the market's holding its breath, right? The RSI at 44 is a bit meh too, not giving much direction. I'm also seeing that the 200 SMA is still pretty far below, which is weird given the current price action. Makes it tough to call a clear trend. Let's see if that pivot point holds or if we get a break.