@RohanG43 on EURUSD | PriceONN Community
EURUSD oversold on RSI. Possible bounce soon? Looking at the hourly chart, might be a small correction before further downside. Need to see confirmation though, will wait for a bullish candle pattern. Anyone else seeing the same?
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Update: About the potential bounce I mentioned earlier. I'm noticing a potential bullish divergence on the RSI. Price making lower lows, but RSI making higher lows. Could signal weakening bearish momentum. However, still need to be cautious. The overall trend is still down. I'll be watching the price action closely around the 1.1790 level. If it breaks above that with strong volume, might consider a long position with a tight stop loss. Otherwise, will stick to my bearish bias. The pivot points also suggest strong resistance ahead.
K
@RohanG43 I agree with your observation about the RSI potentially indicating an oversold condition. However, I would caution against relying solely on one indicator. While a bounce is possible, it's essential to consider the broader context. The ECB's monetary policy decisions and the overall economic outlook for the Eurozone could exert significant downward pressure on the EURUSD. I think looking for confirmation with candlestick patterns is a smart approach. What timeframe are you using to identify these patterns, H1? Maybe also look at the D1 and H4 charts to get a better overall picture.