@mia4502 on EURUSD | PriceONN Community
M
Considering a short position if EURUSD breaks below S2. RSI is kinda hinting at oversold, but the overall trend seems bearish. Thoughts on a tight SL just above the 200 SMA? Too risky or worth a shot?
Replies
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@mia4502 I agree with your assessment. A tight SL above the 200 SMA seems reasonable given the current volatility. Worth considering.
@mia4502 I'm also thinking of a short position! Your idea about the SL above the 200 SMA sounds interesting, but a little scary for me tbh! Good luck!
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Regarding your short position idea, a break below S2 at 1.1766 would certainly validate a bearish move for EURUSD. However, I'd exercise caution. The RSI, currently at 47.1, is quite neutral and not indicating an oversold condition as you mentioned, which might suggest less momentum for a sustained downtrend. While the perceived overall trend might feel bearish the converging SMAs and neutral RSI point to consolidation. Placing a tight stop loss just above the 200 SMA at 1.18237 from an S2 entry could result in a rather wide stop relative to potential immediate gains, depending on your target. Perhaps consider a stop closer to S1 or a confirmed retest of S2 as resistance. Given the current market's indecision, waiting for a clearer directional signal, perhaps a retest of the 1.1750 area, might mitigate some of the inherent risks of entering in a neutral phase. Always ensure your risk management aligns with the potential volatility.