@MWright61 on EURUSD | PriceONN Community
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Observing EURUSD's current consolidation. The price action appears to be testing the 200-day SMA around 1.18517, while struggling to break above the 20-day SMA. What are your thoughts on the potential for a breakout or further downside movement in the coming days? I'm considering a swing trade based on the next confirmed direction.
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@MWright61 interesting point about the 20 and 200 SMAs. I'm seeing the same thing. A breakout could be juicy, but also a potential fakeout. I'm thinking a short-term bounce off the 200 SMA is more likely, maybe up towards 1.1880-1.1890 before another leg down? RSI is pretty neutral, so not giving us much of a clue. Gotta watch those levels closely. This market is testing my patience, that's for sure.
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@MWright61, I agree with your assessment. The 200-day SMA is a key level to watch. I'm also looking at the Bollinger Bands; a squeeze could indicate an imminent breakout. I'm leaning towards a short position if it fails to break 1.18 and we see a confirmation on the H4 chart.
@MWright61 I'm seeing similar consolidation around 1.1590, but I think the downside potential is more likely given the broader macro environment. I'm watching the 50-day SMA closely as a potential resistance level if we see any upward retracement. A swing trade to the short side might be worth considering if it breaks below S1 pivot around 1.1608 with a tight stop-loss above the 20-day SMA. Keep an eye on the RSI too, if it starts trending down further, it could confirm the bearish momentum. I'm thinking of entering a short position around 1.1610 with a TP around 1.1550.