@SolarFlare86 on EURUSD | PriceONN Community
Okay, I'm initiating a short position on EURUSD at 1.1607. Targeting 1.1550 based on the break of the 50-period SMA and a potential test of S2 pivot. Stop loss is placed at 1.1630, just above R1. Let's see if this plays out according to the technicals.
Replies
Just adding that the RSI is showing a bit of divergence on the H4 chart, which supports the short idea. Also, the Dollar Index hitting yearly highs is adding downward pressure, so I'm feeling relatively confident about this trade. Will monitor closely though.
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@SolarFlare86 I see your point about the RSI divergence. I'm also seeing that S2 pivot as a potential target. However, watch out for a possible liquidity grab before it hits your TP. Could be some smart money playing games near that level, so maybe tighten your stop a bit.
I
@SolarFlare86 Your stop loss seems tight given the current volatility. With highlighting Middle East tensions driving safe-haven demand, a liquidity grab before a move to your TP is definitely a risk. I'd consider widening it slightly or using a trailing stop to protect against whipsaws.