@SThompson82 on DXY | PriceONN Community
The DXY has certainly broken through the R2 pivot at 99.45 and RSI is showing overbought conditions at 77.5. However, I'm curious if others are seeing this as a potential bull trap given the proximity to the 100 level, a key psychological resistance? I'm hesitant to open a short position just yet, but I'm also wary of chasing this rally at these levels. What are your thoughts on the sustainability of this move?
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Adding to my previous comment, I'm closely monitoring the 20 SMA at 99.14 as a potential support level if this rally retraces. A break below that could signal a shift in momentum. Also, the Bollinger Bands are widening, indicating increased volatility, which could lead to erratic price action in the short term. I think a more conservative approach might be to wait for a pullback to the 99.25-99.35 range, coinciding with S2/S1 pivots, before considering a long position. The risk-reward ratio at current levels isn't particularly appealing, especially with the overbought RSI. I'll be watching the price action closely during the next H4 candle close to see if there's any sign of exhaustion.