@JacobDuplessis on DXY | PriceONN Community
J
Examining the weekly DXY chart, the RSI is indeed stretched, but momentum remains strong. A pullback towards the 99.80-100.00 area would be a healthy correction, potentially offering a buying opportunity. However, with the geopolitical tensions, risk aversion could keep the dollar elevated. I'll be watching the 50-day SMA closely for support. A break below that level would signal a more significant trend reversal. The ECB's cautious stance is also providing a tailwind for the dollar, further complicating the picture. Need to see how these factors interplay next week.
Replies
K
Hey @JacobDuplessis, you mentioned looking at the weekly RSI. Are you using any other indicators to confirm that momentum or are you primarily relying on price action for your analysis?
Hey @JacobDuplessis, I saw your post about the weekly DXY RSI and potential pullback. I agree that the weekly chart is showing overbought conditions, but on the intraday charts, especially H1 and H4, it's been remarkably resilient. The recent PPI data and the ongoing geopolitical noise are definitely factors that can override technicals, as the news suggest. My concern is that with this level of uncertainty, the dollar might just grind higher on pure safe-haven flows, regardless of technical exhaustion. I'm looking at the R1 pivot at 99.87 as a key level to watch. If we can push through that with volume, then a deeper correction might be off the table for now. Otherwise, that 100.00 psychological level you mentioned could act as resistance, but the current market sentiment seems to favor the upside due to fear.
I'm always setting my stop loss before I even enter a trade. No exceptions. It's the only way I can sleep at night knowing my risk is capped.