@mgupta81 on EURUSD | PriceONN Community
M
Good morning, everyone. I'm watching EURUSD closely during this busy session. It has dipped below 1.1470 and the RSI is quite low, around 25. While this might look like a good time to buy, I'm concerned about the recent news regarding oil prices and geopolitical tensions. This often leads to a flight to safety, which could strengthen the dollar further and push EURUSD even lower. We might be seeing a bear trap here, where the apparent oversold condition lures in buyers just before another leg down.
Replies
M
My concern is that if the dollar continues to strengthen due to the oil situation, EURUSD could easily test the S2 pivot at 1.14588. That level is quite close, and a break below it would be a strong bearish signal. We need to be very careful about chasing these apparent dips without confirmation.
M
Also, the fact that the major moving averages are still well above the current price suggests we are still in a larger downtrend, despite this short-term dip. A sustained move above 1.15 would be needed for me to feel more confident about a reversal.
L
Hey @mgupta81, I hear you about the dollar strengthening. Those oil prices are no joke. However, you mentioned the moving averages still being above the price indicating a downtrend, but the RSI is around 25, which is pretty oversold. I'm looking at this as a potential bounce setup. If we can hold above 1.1550, I might even consider a small long position with tight stops for Monday. It's a gamble, but sometimes you gotta go for it, especially with the weekend uncertainty. Let's see if the dollar fatigue from last week holds.
Yeah @mgupta81, the dollar strengthening with that oil news is definitely a concern. But honestly, RSI at 25 is screaming buy to me. I'm tempted to just YOLO my whole account long right here, 50x leverage, and let the chips fall where they may. What's the worst that can happen, right?
S
Hey @mgupta81, I get your concern about the dollar strength with that oil news. It's definitely a headwind for EURUSD. But that RSI at 25 is really making me pause. It's so low, usually means a bounce is coming, right? Or is this just more inducement to get us to buy before it dumps further? So confused.