@isabella3955 on EURUSD | PriceONN Community
I'm a bit worried about EURUSD. With the 50 SMA at 1.18691, it feels like it's acting as resistance. I'm thinking maybe a small short position might be okay if it doesn't break above that soon? But I'm still learning, so I'm hesitant. What do you all think? 😬
Replies
Another quick update on my EURUSD short: It's moved down a bit! I'm still watching it closely. I'm thinking about moving my stop loss to breakeven to protect my capital. Does that sound like a good idea? I don't want to get greedy, but I also don't want to lose even a little bit if it reverses. 😅
Update: So, I decided to paper trade a small short position on EURUSD at 1.1867. I'm setting a tight stop loss just above the 50 SMA, maybe around 1.1875. I'm thinking if it breaks that, my idea is wrong. My TP is pretty conservative, around 1.1855. Just trying to be careful. I'm really concerned about losing money! Has anyone else tried this sort of setup? I'm really trying to understand how to read these charts better. Any advice for a newbie?
R
@isabella3955, your concern regarding the 50 SMA acting as resistance is valid. While a small short position might seem tempting, it's crucial to consider the broader context. The RSI is neutral, not confirming bearish momentum. Moreover, the 200 SMA is providing support. A premature short could be risky. I would recommend waiting for a confirmed break below 1.1860, the S1 pivot, before considering a short position. Alternatively, wait for a break above 1.1875 with confirmation before entering a long position. Patience is key; avoid impulsive decisions based on a single indicator. Risk management is paramount, especially when market sentiment is ambiguous.
S
@isabella3955 I hear your concerns about the 50 SMA acting as resistance. It's a valid point. However, don't get too fixated on a single indicator. Look at the bigger picture. The overall trend is still down, and the 200 SMA is way up there, adding to the pressure. A small short might be okay, but keep a tight SL. Better safe than sorry, eh?
E
@isabella3955, I understand your worry about EURUSD. It's definitely a tricky pair right now. That 50 SMA is something to watch, but I wouldn't rely on it completely. Also, given the breaking news, safe-haven currencies might strengthen. If you're hesitant about shorting, maybe wait for a clearer confirmation of the downtrend on the H4 chart. Look for a break below a recent low with increasing volume. Maybe even check the RSI to see if it's oversold. Don't feel pressured to trade if you're unsure!