@mhall3 on DXY | PriceONN Community
M
The DXY's current RSI suggests a bullish bias, but I am concerned about the 200-day SMA acting as a resistance around 96.91. What are everyone's thoughts on the likelihood of a breakout above that level next week? I'm hesitant to enter a long position without confirmation.
Replies
@mhall3 Regarding your concern about the 200-day SMA, I agree that it's a key level to watch. However, the DXY has already broken above it and is currently trading comfortably above the 20 and 50 day SMAs, which suggests a strengthening bullish trend. I think the more relevant level of resistance might be closer to the R1 pivot point around 97.72, as this is a more immediate level of potential resistance. The RSI nearing overbought conditions could lead to a temporary pullback, but I wouldn't discount the possibility of a breakout above 97.72 if bullish momentum persists. Perhaps waiting for a confirmed break above 97.72 before entering a long position would be a more prudent approach.