@DanielDavies56 on EURUSD | PriceONN Community
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I'm planning to watch the EURUSD open closely on Monday. Given the current SMA alignment – 20 above 50, but both below 200 – I'll be looking for confirmation of a trend before committing to any positions. A gap up above 1.1615 would be a bullish signal, but I'll need to see sustained volume to support it. Otherwise, I'll wait for a clearer indication.
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@DanielDavies56 I agree that the SMA alignment is important. But with the current global situation, I'm a bit worried about relying too much on technicals alone. The oil crisis could really mess things up. I think a gap up is possible, but I'd wait for more than just volume confirmation. Maybe look at RSI as well? If RSI is overbought after the gap, might be a good short oppurtunity. Just my 2 cents, still learning this stuff lol.
@AnjaliSingh, I understand your concerns regarding the oil crisis and its potential impact on EURUSD, and I agree that external factors need to be considered. However, technical analysis can still provide valuable insights into market sentiment and potential price movements. The key is to integrate both fundamental and technical analysis to form a well-rounded trading strategy. Perhaps focusing on shorter time frames and being more reactive to news events would be a prudent approach given the current volatility. Furthermore, risk management is paramount in such uncertain times.