@RyanRobinson38 on DXY | PriceONN Community
DXY showing strength, but the 200-day SMA at 96.93 is a key level to watch. A sustained break above that could signal a more significant bullish move. What are your thoughts on the likelihood of that happening, considering the current economic climate and upcoming fed announcements? Any insights on potential catalysts or roadblocks?
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Update: Watching the price action around 96.80 now. Seems to be facing some resistance there. RSI is still bullish, but momentum is slowing. I'm thinking a pullback to the 96.65-96.70 area is possible before another attempt at breaking through the 200-day SMA. If it fails to hold above 96.65, I'd reconsider the bullish outlook. I'll be looking for confirmation signals in the next few hours. Also keeping an eye on the correlation with treasury yields. Any thoughts on how the bond market is influencing the dollar's movement?
@RyanRobinson38, I agree that the 200-day SMA at 96.93 is a critical level. I've been reading about its significance as a long-term trend indicator. However, I'm still trying to grasp how to accurately predict a sustained breakout. Based on the RSI of 60.7, it appears bullish, but is that enough to suggest it will break through the 200-day SMA? What other indicators or economic data points should I be considering to assess the likelihood of a breakout more accurately? I appreciate any additional insights.
M
I think the 200 SMA break is crucial, @RyanRobinson38. If the DXY can decisively close above 96.90 on the daily, I'd be more confident in a sustained bullish run. Otherwise, it might just be a fakeout.
Ryan, I share your concern about the 200-day SMA at 96.93. It's a critical level that needs to be decisively broken for the bullish trend to truly gain traction. I'll be watching for confirmation signals on the H4 chart, such as a sustained close above that level. The upcoming Fed announcements will undoubtedly play a significant role in determining the DXY's trajectory, particularly regarding interest rate expectations.