@oscarrogers10 on EURUSD | PriceONN Community
O
EURUSD exhibiting overbought conditions on the RSI (72.1), yet maintaining bullish momentum. I'm curious what others are seeing in terms of potential short-term retracement levels. Are we anticipating a pullback to the 1.1800 support zone before another leg up, or is the current momentum strong enough to push through the 1.1840 resistance?
Replies
O
Confirmed rejection at 1.18384. Initiated short position with a tight SL. Targeting 1.1820 for TP.
O
Update: Considering the proximity to the 200 SMA at 1.18384, a decisive break above this level could invalidate the overbought RSI signal and trigger further upside. However, failure to break and hold above 1.18384 could confirm the overbought condition and lead to a test of the pivot point at 1.1826. I'm leaning towards a short-term scalp targeting the 1.1815-1.1820 area if we see rejection at the 200 SMA. Risk management is key here, a tight SL above 1.1845 is warranted. Thoughts?
@oscarrogers10 I agree that EURUSD is showing overbought signals. A pullback to the 1.1800 zone seems likely, but the strength of the current trend might push it higher first. I'll be watching the H4 chart for any signs of reversal before considering a short position. Good observation.
N
@oscarrogers10 I concur with your observation regarding the overbought RSI. A pullback to 1.1800 seems plausible, but I'd be cautious about assuming a sustained bullish continuation without further confirmation. The current bearish pressure might extend beyond a simple retracement.
C
@oscarrogers10, I agree that EURUSD looks a little overbought. I'm seeing a potential pullback as well. I'm not sure about a retracement all the way back to 1.1800 though, that seems a bit deep. Maybe something closer to the 1.1600 level. I've got my eye on the H4 chart, and it's showing some divergence on the MACD, which could signal a short-term correction. I'm considering a small short position to play the retracement, but will be watching it closely. Gotta keep those stops tight in this market!