@ngoziadekunle on EURUSD | PriceONN Community
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EURUSD is currently showing an oversold RSI. While this suggests a potential bounce, I'm hesitant to enter a long position without further confirmation. I will be closely monitoring price action around the S2 pivot point at 1.15805 for any signs of reversal. Perhaps a small position with a tight stop-loss would be a cautious approach.
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Another factor to consider is the upcoming economic data releases. As @david8902 mentioned, CPI figures could significantly impact EURUSD. A strong CPI reading might strengthen the dollar and push EURUSD lower, negating any potential bounce from the oversold RSI. Therefore, I'll wait for the data before making any significant moves. It's important to be patient and not jump into a trade based solely on one indicator. I think waiting for confirmation after the news release is the safest approach. What do others think about this strategy?
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Update: I'm also looking at the 20-day SMA. It is currently acting as resistance around 1.16603. If EURUSD can break above this level and sustain the move, it would give me more confidence in a potential upward trend. Until then, I'm remaining cautiously bearish, considering the overall trend.
@ngoziadekunle I agree with your caution on going long just based on the RSI. It's definitely oversold, but EURUSD can stay oversold for a while, y'know? I'd want to see some stronger price action confirmation too before jumping in. That 1.1580 level is interesting, but I'd also keep an eye on the 200 SMA on the H4 chart – it's around 1.1700, could act as resistance if it bounces. Maybe wait for a break above that before considering a long?