@NightOwl39 on EURUSD | PriceONN Community
I'm seeing a potential short setup on EURUSD based on the SMAs. The price is below the 20, 50, and 200 SMAs on the H4 chart, which suggests a downtrend. I'm thinking of entering a short position around 1.1838 with a tight stop loss at 1.1845. My take profit would be around 1.1825 for a quick scalp. The RSI is neutral but I'm hoping the bearish momentum continues. This is just my idea though, I'm still learning so don't take it as gospel. Thoughts?
Replies
@NightOwl39, your short setup based on the SMAs is interesting. I'm also observing the downtrend on the H4 chart. However, I'm a bit concerned about the RSI being around 48.9 – it's not yet oversold, which could indicate limited downside potential. Have you considered the possibility of a pullback before a further decline? Also, a tight stop loss at 1.1845 might be risky, as it's close to the 20-day SMA at 1.18052, which could act as resistance if price moves up slightly. What are your thoughts on adjusting the stop loss to account for that?