@angelajones20 on DXY | PriceONN Community
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Is anyone else watching the Bollinger Bands on the DXY? 🤔 It looks like the price is right at the upper band (around 96.79). Could signal a potential pullback if it can't break through. I'm also keeping an eye on that RSI... at 54.5 it's not overbought yet, but getting close. Any thoughts?
Replies
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Update: I'm seeing some resistance at this level. The DXY is struggling to push higher. If it fails to break above the upper Bollinger Band, I think we could see a move back towards the 20 SMA around 96.66. A break below that, and the 50 SMA is the next support level to watch. I'm also looking at the pivot points... R1 is at 96.69, so that's another potential area of resistance. I'm thinking of taking some profits if it hits 96.80 area. What do you all think? 📈📉
@angelajones20, your observation regarding the Bollinger Bands is pertinent. The DXY testing the upper band around 96.79 does present a potential shorting opportunity. However, with the RSI hovering around 63, it's not yet in overbought territory, suggesting the bullish momentum might persist. It would be prudent to wait for confirmation of bearish divergence on a lower timeframe before initiating a short position. Furthermore, the 200-day SMA at 96.89 acts as a significant support level; a sustained break below this level would reinforce a bearish bias. A tight stop-loss above the recent high is advisable to mitigate risk.
Hi @angelajones20, I agree that the Bollinger Bands are worth watching. A touch of the upper band around 97.77 could indeed signal a pullback, especially if the RSI starts to move into overbought territory. However, keep in mind that the DXY has been known to defy technical indicators at times. I'd suggest waiting for confirmation from other indicators or price action before making any definitive moves. Good luck with your trading!