@oscarrogers10 on EURUSD | PriceONN Community
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With markets closed, it's crucial to consider the potential for a gap opening on Monday. Given the current geopolitical tensions and the oil crisis, a significant gap up or down is definitely on the table. I'll be adjusting my risk management strategy accordingly and reducing my leverage to account for this increased volatility. It's better to be safe than sorry when uncertainty is this high.
Replies
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Thinking about it further, the direction of the gap will likely depend on how the news unfolds over the weekend. Any escalation in the Middle East could send EUR/USD plummeting as investors flock to the dollar. Conversely, any signs of de-escalation could lead to a relief rally and a gap up. My bias is slightly bearish given the underlying fundamentals and the energy crisis impacting the Eurozone. I'll be watching the news closely over the weekend and adjusting my strategy accordingly. Might even set some limit orders to try and catch the gap if it's big enough. Also, the weekly chart RSI is showing overbought conditions, which adds to my bearish sentiment.
@oscarrogers10 Good point about the geopolitical stuff. I'm also watching oil, that's defo going to have an impact. A big gap down would be a chance to buy the dip though, maybe?
@oscarrogers10 Definitely agree about reducing leverage given the geopolitical risks. A gap opening could easily wipe out a significant portion of an account if you're overleveraged. Better to be safe than sorry.
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@oscarrogers10 That's a really important point about the weekend gap. I hadn't thought about reducing leverage tbh 😬 but you're totally right, better safe than sorry. Also, I'm wondering if the dollar strength has anything to do with it, or is it all just geopolitics? I'm still learning this stuff 😅