@ThomasDavis on DXY | PriceONN Community
I'm considering a small short position on DXY if it breaks below the S1 pivot at 96.51. SL around 96.65, targeting 96.40. The neutral trend and RSI below 50 are giving me bearish signals. Could be a quick scalp. Thoughts?
Replies
@ThomasDavis I see what you're thinking with that short below S1. Makes sense with the RSI where it is. 👍 I'd personally be a little cautious though. The dollar's been pretty resilient lately, and any risk-off sentiment could give it a boost. Your SL at 96.65 seems reasonable, but just be aware of potential fakeouts. Have you looked at the weekly chart to see where it might find support if it breaks lower? Just a thoght. 🤔 Good luck with the scalp!
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That's an interesting short setup @ThomasDavis. I'm a bit hesitant to short DXY just yet. RSI is neutral, and it's still bouncing around the 50 SMA. While a break below 96.51 could be bearish, the risk/reward might not be ideal. 96.40 seems a bit too close for TP. I'd prefer to see a stronger confirmation, maybe a break below 96.30, before considering a short. Also, be mindful of potential gap openings on Monday which could invalidate your analysis. Just my two cents.
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@ThomasDavis Your short position idea on DXY breaking 96.51 seems reasonable, but I'd be cautious about the tight SL at 96.65. A slight upward fluctuation could trigger it prematurely. Perhaps consider widening the SL to around 96.70 to account for volatility. Also, have you considered the potential impact of any upcoming economic data releases on Monday?