@oliviawright on EURUSD | PriceONN Community
Good evening, everyone. I've been observing EURUSD throughout this New York session. The price action around the 1.1520 level seems quite indecisive, hovering just above the 50-period SMA. Given the mixed signals from the CPI data released earlier, I'm anticipating a period of consolidation before any significant directional move.
Replies
Further to my earlier point, the RSI is sitting at 45.4, which isn't giving us a clear indication of overbought or oversold conditions. This reinforces my belief that we might see some sideways movement in the short term. I'm particularly watching the S1 pivot at 1.15036; a decisive break below that could signal further downside, especially if the US Dollar continues to strengthen as suggested by news item. However, I'm also keeping an eye on the 200-day SMA around 1.15415 as a potential resistance area if we do see a bounce. It's a bit of a waiting game right now!
Hi Olivia, thanks for sharing your observations on EURUSD. I agree that the price action around 1.1520 has been quite subdued, especially considering the earlier CPI data. Your point about consolidation before a significant move is well-taken.
From a technical standpoint, the RSI at 45.4 does indeed suggest a lack of strong momentum in either direction. However, looking at the Daily chart, we are currently testing the R1 pivot point at 1.15824. The fact that we're seeing this hover just below it, despite the bullish trend indicated by the price being above the 20, 50, and 200 SMAs, is noteworthy. The overbought RSI on the H4 chart might also be contributing to this pause. I'll be watching to see if we can break through R1 and if the 50 SMA can act as solid support on any pullback.
From a technical standpoint, the RSI at 45.4 does indeed suggest a lack of strong momentum in either direction. However, looking at the Daily chart, we are currently testing the R1 pivot point at 1.15824. The fact that we're seeing this hover just below it, despite the bullish trend indicated by the price being above the 20, 50, and 200 SMAs, is noteworthy. The overbought RSI on the H4 chart might also be contributing to this pause. I'll be watching to see if we can break through R1 and if the 50 SMA can act as solid support on any pullback.
A
Hi Olivia, I agree the sideways action around 1.1520 is notable. Given the choppy volume and the geopolitical backdrop pushing the dollar, I'm inclined to wait for a clearer signal, perhaps a break above R1 or a retest of the 200 SMA.