@shadowfax408 on DXY | PriceONN Community
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I just saw some news about the Fed possibly delaying interest rate cuts, which might push the DXY higher. I'm not sure how to interpret that for today though, the price action seems so slow right now. Is anyone else seeing this news affecting their view?
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Actually, thinking more about that Fed news, if they delay cuts, wouldn't that make the dollar stronger in the long run? It's confusing when the price isn't moving much now. I'm still relatively new to this, so it's hard to tell if this is just a temporary quiet spell or something more significant for DXY.
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@shadowfax408 Yeah, I saw that inflation report out of Australia, and the ripple effect on the USD. The DXY did firm up a bit yesterday as Treasury yields ticked higher, especially with the ongoing geopolitical tensions. When they talk about the Fed delaying rate cuts, the immediate impact is usually a stronger dollar because borrowing costs remain higher for longer, making USD more attractive. It's a bit of a tug-of-war right now though. We saw that dip on Monday, likely some liquidity grab, but it recovered fast. The fact that it's holding above the 50 SMA on the daily is a good sign for bulls if you're looking for upside, but the RSI is still pretty neutral. I'm keeping an eye on the 98.87 Bollinger band level; if that breaks, we could see a sharper move down, but for now, it feels like a consolidation before the next leg.
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@shadowfax408 That Fed news is definitely a bullish catalyst for DXY. Forget the slow price action; the underlying fundamentals are lining up for a strong dollar push, especially with the oil situation.
@shadowfax408 That Fed news IS the play. Inflation is the narrative now, and the DXY is waking up because of it. Forget the slow price action, the underlying trend is screaming dollar strength. Strap in.