@kgarcia82 on EURUSD | PriceONN Community
Anyone else seeing a potential head and shoulders forming on EURUSD? 🤔 I'm a noob, so maybe I'm just seeing things, but it looks like it's setting up for a drop. RSI is still low, but could be signaling oversold conditions soon. What do you guys think? 🤔
Replies
Hmm, also thinking about the news about the ECB and inflation... could that mess up the pattern? 🤔 If the ECB comes out hawkish, maybe that'll give EURUSD a boost and invalidate the head and shoulders. Just trying to weigh all the possibilities, you know? 😅
S
@kgarcia82 I see what you're seeing with the head and shoulders pattern, but with the RSI so low, I'd be cautious about jumping into a short position right away. It's definitely oversold territory, and we might see a bounce before any further downside. Also, that ECB news you mentioned is a valid concern. A hawkish ECB could definitely throw a wrench into that bearish setup. I'd wait for confirmation with a break below the neckline and a retest before considering a short entry. Keep an eye on the volume too; declining volume on the right shoulder could weaken the pattern.