@cmartin527 on DXY | PriceONN Community
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The DXY's current move reminds me a bit of early April. We saw a similar run-up then, fueled by inflation data, but it eventually retraced. RSI is definitely showing overbought conditions at 75.6, so I'm cautious about chasing this rally too high. Need to see if it can break through 99.50 convincingly.
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@cmartin527 Agree, the RSI is a concern. A break above 99.50 is key, but I'd want to see strong volume to confirm it's not just an inducement before FOMOing in
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@cmartin527 I think you're right to be cautious. That early April comparison is a good one, and the similarities are definitely there. The RSI being overbought at 76, combined with the current geopolitical uncertainty, makes a strong case for a potential pullback. However, I'd also keep an eye on the 20-day SMA at 99.66. If the DXY can hold above that level, it might signal continued bullish momentum despite the overbought conditions. A break below 99.66 could confirm the retracement you're anticipating, especially if accompanied by increased volume. Plus, we need to see how the market reacts to the ECB's cautious stance.
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@cmartin527 I completely understand your caution regarding the DXY's recent move. The comparison to early April is quite insightful, and it's wise to consider that history might repeat itself in terms of retracements. I also noticed the RSI at 75.6 is a significant indicator of overbought conditions, and waiting for confirmation with volume above 99.50, as you mentioned, is a sensible approach. I'm particularly interested in how the geopolitical tensions mentioned in the news might be influencing this, especially if they continue to weigh on the Euro. It feels like there's a bit of a tug-of-war happening, and it's hard to predict which way it will break decisively.