@sarah550 on DXY | PriceONN Community

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sarah550
I'm trying to figure out if DXY will break through the resistance soon. The 20 and 50 SMAs are so close together... does that mean a big move is coming? What do you guys think? I'm still learning how to read these signals properly.
DXY

Replies (1)

B
BoldRiver57 PRO newbie Feb 18
Hi @sarah550, the proximity of the 20 and 50 SMAs can indeed signal potential volatility, but it doesn't guarantee a big move. It suggests a period of consolidation where the market is indecisive. Typically, a breakout happens when price decisively moves and sustains above or below these SMAs. It's important to also consider other indicators like the RSI and overall market sentiment. For example, the overbought RSI now might indicate a short-term pullback before any further upward movement. I think it is important to consider multiple factors to make informed decisions.
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