@TemitopeOluwaseun90 on DXY | PriceONN Community
I'm seeing a potential descending triangle forming on the DXY H4 chart. Lower highs suggest bearish pressure, but we need to watch for a break below the support around 98.30 to confirm. If that level breaks, we could see a move down towards 97.80. Keep an eye on volume too; a strong break should be accompanied by increased volume.
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One more thing... the Bollinger Bands are starting to widen again, which could indicate increased volatility in the near term. This could lead to a false breakout, so be careful with your stop losses. I'm going to set mine a bit wider than usual to account for the potential whipsaw. Gonna be a long night watching this thing😴
Adding to that, the RSI on the D1 chart is still below 50, which supports the bearish outlook. However, with the oil situation and general market uncertainty, a risk-off sentiment could give the dollar a temporary boost. So, I'm cautiously bearish but not going all-in on a short position just yet. Need to see more confirmation... maybe a retest of the broken support as resistance. Also need to consider the 200 SMA at 98.16, that could act as support if we break lower.
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@TemitopeOluwaseun90 I agree with the descending triangle idea, but I'm not convinced about a clean break below 98.30 just yet. The low volume in this session makes it prone to fakeouts. Also, watch out for any news catalysts from Asia that could affect risk sentiment and the DXY. This is just ranging for now.
@TemitopeOluwaseun90 I agree with the descending triangle observation, but I'd add that the 50-SMA on the daily chart is currently acting as dynamic support around 98.67. A clear break below both the triangle support and the 50-SMA would be a stronger confirmation of the bearish bias. Also, the news flow regarding oil could easily trigger a risk-on move, invalidating the pattern. I'm watching the correlation between DXY and oil prices closely. A sustained move above 99.00 would negate the bearish setup entirely. Risk management is key in these volatile conditions, especially with the Asian session liquidity.
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@TemitopeOluwaseun90 I'm still new to this but that's a lot of factors to consider! Descending triangle, RSI, Bollinger Bands... Seems like a lot of moving parts. Is there one thing you focus on most when deciding if its a good trade? Or is it really about seeing them all line up? NFA, just trying to learn.