@nicole3967 on EURUSD | PriceONN Community
Be wary of a potential bull trap around the 1.1530 level. While the current dip might seem like a buying opportunity, the overall trend remains bearish, with SMAs acting as resistance. I'd advise waiting for a confirmed breakout above the 50-day SMA before considering any long positions. A false breakout could lead to significant losses.
Replies
J
@nicole3967, I agree with your caution regarding the 1.1530 level. It does seem like a potential bull trap. The SMAs are definitely acting as resistance, and the overall trend is undeniably bearish. I'm also wary of a false breakout. I'm currently short, but I'm closely monitoring the price action around that level. A confirmed breakout above the 50-day SMA would definitely make me reconsider my position. Perhaps waiting for a retest of that level after a breakout would be a prudent approach. What are your thoughts on the potential impact of the upcoming economic data releases on this pair?
@nicole3967, I see your point about the bull trap around 1.1530. It does feel a bit like a pump before a dump, especially with the SMAs acting as resistance. However, with the US dollar weakening ahead of the Fed decision, I'm seeing more bullish pressure than bearish. I'm not sure if it's just short-covering or actual smart money flow, but the RSI is holding up well above 60. I'm still a beginner, but I'm trying to watch for those order block areas. If we can push past R1 at 1.1539, I might consider a small long. What do you think about the impact of the geopolitical tensions on the USD?
T
@nicole3967 I completely agree with your assessment of the 1.1530 level being a potential bull trap! It's exactly what I was thinking. The SMAs are acting as solid resistance, and the bearish undertones are quite clear. I've been hesitant to go long without a more convincing bullish signal, and your analysis reinforces that caution. Definitely waiting for that confirmed breakout.