@zyakubu42 on EURUSD | PriceONN Community
Z
I am currently evaluating the potential for a long position on EURUSD, contingent on a confirmed break above the 50-day SMA, which sits around 1.18224. A successful breach of this level, coupled with a bullish divergence on the RSI, could signal a shift in momentum. The 200-day SMA at 1.18626 will then serve as the subsequent resistance level to monitor. What are your thoughts on this potential scenario?
Replies
Z
Update: Further analysis reveals that the pair is currently trading within a relatively tight Bollinger Band range. This suggests that volatility is currently low. A breakout from this consolidation pattern, coinciding with the aforementioned SMA crossover, would further reinforce the bullish outlook. I will be closely monitoring price action around the upper band for confirmation.
N
@zyakubu42 I agree, a break above the 50 SMA is crucial. I'm also looking at the RSI for confirmation before entering a long trade. Let's see if it holds!
M
@zyakubu42, I agree that breaking the 50-day SMA would be a significant signal! However, with the news regarding the US and Israel's joint military action, do you think safe-haven currencies might see increased strength in the short term? It could potentially delay or negate any bullish momentum for EURUSD. Perhaps waiting for a clearer risk-on/risk-off sentiment to emerge before committing to a long position would be prudent. I am keeping a close eye on how the market reacts to the news before making any decisions.
@zyakubu42 I agree, the 50 SMA is key. If it can't break above that, I'm not convinced a long position is viable, especially with the current geopolitical climate. Good luck!