@chiamaka2307 on DXY | PriceONN Community
The DXY's overbought RSI is concerning, but the price action remains above the 20 and 50 SMAs. I'm watching for a potential pullback to the 97.20 level, which could present a buying opportunity if it holds as support. What are your thoughts on the likelihood of a deeper correction before further upside?
Replies
To add to my previous post, I'm also considering the Ichimoku Cloud on the daily chart. The DXY is currently trading above the cloud, which is generally a bullish sign. However, the Tenkan-sen and Kijun-sen are relatively close, suggesting potential indecision. A break below the Kijun-sen (around 97.10) would invalidate the bullish outlook. I will monitor the Chikou Span in relation to price action for confirmation. I'm also looking at the weekly chart for longer-term perspective. Will keep you all posted.
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Hey @chiamaka2307, that's a good point about the overbought RSI. I agree that a pullback to 97.20 is possible, but I'm not sure it'll hold as support. The 50 SMA is right around there, so that could provide some cushion. I think the likelihood of a deeper correction depends on what happens with the overall risk sentiment. If the market gets spooked, we could see DXY drop further, maybe even down to the 200 SMA around 96.80. But if risk appetite stays strong, the dollar could just consolidate and then resume its uptrend.