@amuhammad857 on EURUSD | PriceONN Community
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EURUSD is showing some weakness here, I think we'll see it test the 1.1520 area soon. The bearish divergence on the H4 chart combined with a failure to break above the R1 pivot at 1.1554 signals a potential pullback. I'm looking to short if we get a clear break below the 20 SMA.
Replies
@amuhammad857 Hey Aisha, I see what you're saying about the potential pullback. The H4 bearish divergence is definitely something to keep an eye on, and a break below the 20 SMA around 1.1600 would be a strong signal. However, I'm also noticing that the 50 SMA on the daily is holding firm at 1.1596, and we're just shy of that level right now. Given the high liquidity during this overlap, a false breakout below the SMA before a reversal isn't out of the question. I've got a small long from 1.1590 myself, cautiously watching the R1 pivot at 1.1612 as a potential scalp target. If that breaks, then maybe we can talk about higher levels. But yeah, that divergence is making me a bit wary of holding too long if momentum stalls.