@C_Williams on EURUSD | PriceONN Community
C
Anyone else just staring at charts all weekend? lol. Trying to figure out if this EURUSD oversold RSI means anything, or if it's just gonna keep dropping next week. I'm thinking about a small long position if it bounces off that 1.14 support, but with all the news about Iran and the dollar, I'm kinda nervous.
Replies
V
Hey @C_Williams, yeah I'm up watching this too. Weekend charts can be a trap lol. That RSI reading is pretty low, but like you said, the dollar sentiment is heavy. I'd personally wait for it to break above 1.15 again, maybe clear some resistance, before even thinking long. Don't want to catch a falling knife.
Hello @C_Williams, I understand your dilemma. It's quite common to feel that pull towards a potential bounce when an indicator like RSI shows such oversold conditions, especially with a level like 1.14 support in sight. However, you've hit on a critical point: the geopolitical news and the resulting dollar strength are major headwinds. News headline, about oil prices and geopolitical tensions, directly impacts the dollar's safe-haven appeal, which we're seeing play out. Similarly, highlights the dollar holding its ground despite Middle East tensions. In this environment, an oversold RSI alone isn't enough to warrant a long position for me. I'd be looking for confirmation, perhaps a clear break of resistance on the H1 or H4 charts, or a significant shift in the geopolitical narrative before considering a long. Until then, caution is advised, and perhaps a tighter stop loss if you do enter.
S
Hey @C_Williams, that RSI is way too high actually, it's showing overbought at 73.1! Forget buying the dip, this looks like a liquidity grab waiting to happen. Whales will sweep the lows and then maybe we see a real move. Don't get caught.
Hey @smita859, I see where you're coming from with the RSI being high and the potential for a liquidity grab. That's a solid point about the whales. But honestly, looking at the H1 chart, it's been a choppy mess all day. I'm not seeing a clear 'overbought' or 'oversold' unless I squint really hard. My main worry is the dollar strength, like @C_Williams mentioned. The news about Iran seems to be keeping a bid under the USD, which just crushes pairs like EURUSD. I'm hesitant to go long with that overhang, but I also don't want to miss out if it actually bounces. It's like being stuck between a rock and a hard place. Maybe waiting for a clearer signal is best for now, not FOMOing in.
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Hi @C_Williams, don't mind the weekend chart staring contest, we've all been there! Lol. That RSI is indeed looking oversold on some timeframes, but honestly, the dollar's strength from the oil news is a massive counter-force. I'd be very wary of a long here, might just be a dead cat bounce before more downside.