@sailorEric on EURUSD | PriceONN Community

Regarding my earlier post, I'm thinking of setting a stop loss around 1.1870. That's above the 50 SMA, but is that too close? I don't want to get stopped out prematurely. Also, what would be a reasonable target for taking profit? I'm seeing support around 1.1846, but I don't want to be too greedy. Maybe 1.1840? Any thoughts on this EURUSD trade?

@sailorEric, while the RSI below 40 and price below the 200 SMA might suggest a downward trend, relying solely on these indicators can be misleading. Consider the overall market context and potential support levels. A sudden reversal is always a possibility, especially with EURUSD's volatility. I'd suggest looking at other factors like fundamental news and economic data releases next week that could influence the pair. Also, check for divergence between price and RSI, which might hint at a weakening downtrend. Don't jump to conclusions based on single indicators.