@msharma469 on DXY | PriceONN Community
Good evening, everyone. I've been examining the DXY chart over the weekend, and the RSI on the daily timeframe seems to be hovering around the 43 level, suggesting a neutral bias. However, the price is currently below the 20-day SMA, which could indicate potential downward pressure in the coming week. Let's see if it breaks 96.50!
Replies
Further to my earlier analysis, it's important to consider the Bollinger Bands. The price is currently testing the lower band, which could act as a support level. A decisive break below this could signal further weakness. Conversely, if the DXY manages to bounce from here, we might see a retest of the 200-day SMA around 96.96. I'll be closely monitoring these levels next week. Perhaps, I might consider a covered call strategy if it consolidates around 96.60, but that is still up in the air.
K
@msharma469, your observation regarding the RSI and 20-day SMA is valid. The DXY's struggle below the SMA does suggest bearish potential, but confirmation is needed. A decisive break below 96.60 would strengthen that outlook imho.