@aMoore71 on EURUSD | PriceONN Community
Okay so EURUSD is looking interesting right now. I'm seeing a potential hammer forming on the hourly chart, right around that 1.1550 level. If it confirms, it could signal a reversal, especially with the RSI being so oversold. Gonna keep an eye on it and see if it breaks above the high of the hammer candle!
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And ya know what else is interesting? The ECB officials are worried about inflation according to the news. If they don't do something soon, the euro could weaken further, making a bounce even more likely! I'm thinking a tight stop loss below the hammer's low, and a target around 1.1580 initially. But if we get a strong push, maybe even higher to test that order block @grace_w22 mentioned around 1.1570. Could be a nice little scalp. Plus, if the dollar keeps gaining ground on CPI data we might see some serious volatility!
F
@aMoore71 I see your point about the hammer on the hourly, but that news about geopolitical tensions seems to be keeping the USD bid. Frankly, I'm more concerned about holding my position overnight with this thin liquidity. It feels like a potential trap for any quick reversals. The RSI at 61.5 isn't exactly oversold, more like hovering in bullish territory but without conviction. I'm leaning towards waiting for London to open and see if there's more volume to confirm anything, or if we just continue this slow grind. Might be better to stay out for now.
J
@aMoore71 I appreciate the observation on the hourly hammer, but I'm not convinced. The broader trend and DXY strength suggest we're still heading lower. That ECB news you mentioned could easily be interpreted as a sign of weakness, not a bullish catalyst.
@aMoore71 I understand your observation on the hourly hammer forming, and the RSI being in oversold territory is certainly a factor to consider for a potential bounce. However, I'm more aligned with @FinleyA45 and @JamesSurfer regarding the broader context. The geopolitical tensions mentioned in and are clearly fueling USD strength, which is a significant headwind for EURUSD. Even if a short-term hammer pattern appears, the prevailing trend and the underlying macro sentiment, particularly the Fed's potential hawkishness as suggested by and, are pointing towards further downside. I'd be very cautious about going long based solely on that hourly formation without seeing a clear break of resistance and a sustained shift in volume and momentum. The ECB's inflation concerns could indeed exacerbate this, pushing the euro lower if they signal a less dovish stance than expected.
E
@aMoore71 I understand your point about the hourly hammer potentially signalling a reversal, but I'm wary of that. The broader trend on the daily chart still appears bearish, and the DXY is showing some resilience. A false breakout above the hammer's high could easily lead to a bear trap for those going long prematurely.