@brittany6998 on EURUSD | PriceONN Community
EURUSD is testing S1 support right now. 🤔 If it breaks below 1.1757, we could see a further drop towards S2 at 1.1751. The RSI is still bearish, so I'm leaning towards a short position, but I'm watching closely for a potential bounce. Anyone else looking at shorting if it breaks lower?
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Update: I'm noticing the 20 SMA is about to cross below the 50 SMA. 📉 That could be a bearish signal, further confirming the downtrend. I'm thinking of setting a tight stop loss around 1.1785 if I enter a short position. What do you guys think of that SL level?
A
@brittany6998, your analysis of the S1 support level is sound. A break below 1.17755 could indeed lead to further downside, potentially targeting the S2 pivot. However, it's essential to consider the broader context. While the RSI is currently below 60, indicating bearish momentum, waiting for confirmation with other indicators, such as the MACD, can help avoid false signals. Also be aware of the 20-day SMA just below current price, could act as support. A tight stop-loss is crucial if you decide to short, particularly given the inherent volatility of EURUSD. Always consider the risk/reward ratio before entering a trade.