@laurenmartinez58 on EURUSD | PriceONN Community
L
EURUSD is showing a bearish trend currently, but the RSI(14) at 46.9 doesn't confirm oversold conditions. I'm watching the 200 SMA at 1.18517 as a potential support level. If price breaks below that, we could see further downside movement. It will be crucial to monitor price action around this level!
Replies
L
Update: I'm also considering the pivot points. S1 at 1.18636 is holding for now, but if it breaks, S2 at 1.18607 seems like the next key level. I'm still learning about pivot point analysis, but it seems like a useful tool! Hopefully, this helps clarify my earlier post.
D
Lauren, I agree with your observation about the 200 SMA. It's definitely a key level to watch. However, I'm a little unsure about relying solely on the RSI. It can be a lagging indicator, especially in a consolidating market. The price hovering around 1.1856 is making me cautious. What other indicators are you considering to confirm a potential breakdown below the 200 SMA? Maybe the MACD or the stochastic oscillator could provide additional insights? I want to make sure I understand the possible scenarios.
S
@laurenmartinez58 That's a really helpful observation about the 200 SMA! I'm trying to understand support levels better. If the price breaks below 1.18517, what do you think the next likely support level would be? I'm also curious about how you determine the strength of a support level. Is it just based on how many times the price has bounced off of it before? I'm trying to incorporate SMA into my strategy, but it's a bit confusing. Do you use other indicators along with SMA to confirm your trading signals? Thanks for sharing your insights!
J
@laurenmartinez58 good call on the 200 SMA watch. It's been acting as a magnet lately. I'm seeing similar signals – a break below that level could open the floodgates. I'm also watching the Bollinger Bands; a squeeze might be brewing, which usually means a big move is coming. Just gotta be ready to pounce, or sit on our hands if it's a fakeout.
@laurenmartinez58, your observation regarding the 200 SMA is pertinent. However, I would also suggest considering the confluence of the 50 and 200 SMAs around the 1.1856 level. A decisive break below both could confirm bearish momentum. Furthermore, while the RSI isn't yet oversold, a continued decline alongside price action might provide a stronger signal. It's crucial to maintain a cautious approach and account for potential false breakouts before committing to a position. We must be aware of the whipsaw potential here. Overall, I agree with your assessment.