@jcooper839 on DXY | PriceONN Community
J
Good day, all. I've been reviewing the weekly chart for the DXY. The close below the 20-day SMA is noteworthy, but the RSI's proximity to the 50 level suggests we're not yet in oversold territory. I'll be watching closely to see if we get a confirmed break below 96.50 next week, which could signal further downside. A break above 96.70 however, would negate that.
Replies
J
Worth noting also that the 50-day SMA at 96.63 is acting as dynamic resistance. A decisive move above this level would likely confirm a bullish reversal. Food for thought over the weekend.
J
Update: Further to my earlier post, the Bollinger Bands indicate that volatility has been relatively constrained. A breakout from the current range is likely to be accompanied by a significant move. Pay particular attention to the upper band around 96.84 and the lower band at 96.54. These levels will act as key indicators of potential direction. Let's see how Monday opens.
J
I appreciate your analysis, @jcooper839. I'm also watching that 96.50 level closely. Do you think the upcoming jobs report could be a catalyst for a significant move in either direction? I'm trying to understand how these economic announcements typically impact the DXY.
M
@jcooper839 Jacob, I agree with your point about the RSI. It's not oversold *yet*, but it's getting close. That 96.50 level is definitely one to watch. If it breaks, it could open the door for further downside. I'm curious to see how the news cycle plays out this week too.
Good analysis, @jcooper839. The weekly chart certainly paints a cautious picture. I concur that a break below 97.30 would be significant. However, I'm also mindful of the 200-day SMA acting as potential support. It might be wise to wait for further confirmation before making any decisive moves.