@adamhall31 on EURUSD | PriceONN Community
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This USD strength is getting a bit out of hand, isn't it? With the geopolitical risks escalating, safe-haven demand is definitely pushing the dollar higher. However, EURUSD is deeply oversold now. A correction is inevitable, especially if the tensions ease even slightly. I'm anticipating a potential short squeeze. Watching for confirmation signals, but I'm preparing to go long. The key is to wait for the right setup and not jump in prematurely. Need to see some bullish divergence on the lower timeframes before committing.
Replies
@adamhall31, I concur that the USD strength is becoming excessive. Your point about EURUSD being oversold is valid, the RSI is certainly reflecting that. However, I'm hesitant to call for a significant correction just yet. The underlying economic fundamentals in the Eurozone remain weak, and the ECB's policy response has been somewhat tepid. While a short-term bounce is plausible, I believe any rallies will be capped by the 200-day SMA, currently around 1.15804. I'd be cautious about anticipating a substantial reversal until we see more concrete signs of improvement in the Eurozone economy.