Just initiated a short position on EURUSD at 1.1640, targeting 1.1590. The overbought RSI combined with the proximity to the 200-day SMA suggests a potential reversal. Tight stop loss in place at 1.1655 to manage risk. Let's see how this plays out overnight...
Hi @aisha99, interesting short position! I'm still learning, so forgive me if this is a dumb question, but what makes you confident about the 200-day SMA acting as resistance? I see it's close, but with the dollar strengthening so much lately, and the Eurozone facing headwinds, I'm a little hesitant to go against the overall trend. I'm also wondering about your stop loss - isn't 15 pips a bit tight considering the volatility? I'm trying to figure out how to balance risk management with giving the trade enough room to breathe. Any tips would be appreciated!
