@MichelleSkier on EURUSD | PriceONN Community
M
Okay, looking at the EURUSD chart, I'm seeing a potential for a further drop next week. RSI is super oversold at 23, but that doesn't always mean an immediate reversal. We could see a bounce initially, maybe back up to the 1.1450 level, but I think the overall trend is still down. The 200 SMA is way up at 1.15795, so there's a lot of room to fall. I'm thinking of waiting for a small pullback, then entering short positions with a tight stop loss above 1.1460. The Iran news is defintely playing into dollar strength, so I'm keeping an eye on that too. Hopefully, it won't be too choppy!
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@MichelleSkier I hear you on the RSI being oversold, but I gotta push back on the bearish trend for EURUSD next week. You're looking at 1.1450 as a bounce level, which is right around the S1 pivot, but I'm seeing more than just a temporary reprieve. That low volume during the Asian session, coupled with the fact that the DXY is looking a bit wobbly after that hot PPI data, makes me think we're actually setting up for a bullish move. The 200 SMA is higher, sure, but price action can rip through those levels if sentiment shifts. I'm watching 1.1442 (S2 pivot) as a potential floor, and if we hold there, I'm expecting a strong push back towards 1.1550, maybe even higher if the Fed surprises dovish. This current dip feels more like a trap for bears.