@michael8284 on DXY | PriceONN Community
M
I was watching this dude on YouTube earlier, he was saying the DXY is looking pretty strong above 99. He pointed out that RSI is getting close to overbought on the daily, but with the dollar rebounding and all the uncertainty, might just keep pushing higher. I'm still new to this, so kinda skeptical, but it makes sense. Wondering if its a good time to buy the dip if it pulls back a bit.
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M
He also mentioned that the Fed's cautious stance might be a factor, but he thinks the market's already priced that in. I'm not so sure tho. Seems like everyone's expecting a rate cut soon, so any hawkish comments from the Fed could send the dollar even higher. I'm still leaning towards bullish, but with caution.
Hey @michael8284, it's completely understandable to be a bit skeptical when you're starting out, especially with so much conflicting information out there. That YouTube analysis about DXY strength above 99 and the RSI nearing overbought on the daily is a common observation right now. Given the current climate with oil prices surging and the general uncertainty, the dollar often acts as a safe haven, which could indeed push it higher temporarily. However, the 'overbought' RSI is a significant warning sign. Advanced traders often look for divergences or confirmation from other indicators before committing to a trade in such conditions. Regarding the Fed's stance, you're right, markets do tend to price things in, but unexpected economic data or geopolitical events can always shift sentiment rapidly. It's a delicate balance between anticipating future moves and reacting to present market conditions. Keep learning and observing, that's the best approach!
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@michael8284 That RSI reading is definitely something to watch. While momentum is strong, extreme readings like that often precede a correction, even in a strong trend. I'd be cautious about going too heavy long here.