DXY looking a little too good right now 🤔 RSI overbought on the daily and we're bumping up against R2 at 99.4. Could be a bull trap setting up before a bigger correction. I'm staying cautious and waiting for confirmation before jumping in either direction. Don't get faked out!
Okay, so thinking more about this possible bull trap... The news about USD/JPY eyeing 160.00 is definitely fueling some of this dollar strength, but is it sustainable? Geopolitical risks can be fickle. Also, oil prices are still high, and that's putting pressure on inflation expectations. If inflation doesn't cool down, the Fed might have to stay hawkish, which could further boost the dollar short-term. But long-term, it could also choke off growth. I'm watching the next CPI print closely. If it's hot, I might consider a short position on DXY, targeting 99.15-99.20 area. Need more confluences though. 🤔
