@sani8141 on DXY | PriceONN Community
Seeing DXY dip below 97.80 now, which is near the lower Bollinger Band. The geopolitical news about Iran seems to be weighing on it, as expected. Is anyone else seeing this as a potential bottoming signal, or are we looking at further downside towards the 200-day SMA?
Replies
Actually, thinking about it, the RSI at 39 is still not in oversold territory, so there might be more room to fall. We've broken through the 20 and 50 SMAs pretty cleanly. Maybe this Iran de-escalation isn't enough to stop the dollar's current bearish momentum. The Aussie dollar is gaining against it, which is a big signal.
T
@sani8141 I see your point about the RSI not being oversold, but honestly, this slow grind lower feels like it's setting up for a bigger move. The geopolitical easing is definitely taking pressure off the dollar.
W
@sani8141, I get what you're saying about the RSI not being oversold yet, and you're right, the 200 SMA is quite a ways down at 98.75. However, this kind of steady decline below key SMAs on high volume activity does have a certain weight to it. The easing of geopolitical tensions, especially that Iran news, really does seem to be taking the wind out of the dollar's sails. It's hard to ignore that fundamental shift. While I'm not ready to call a bottom just yet, the risk/reward for shorting here doesn't look as appealing as it did a few hours ago. I'm watching the 97.70 pivot level closely; a decisive break below that could signal more pain.