@rajesh9339 on EURUSD | PriceONN Community
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I am a beginner and trying to understand moving averages better. With the 200 SMA for EURUSD currently above the price, does this suggest a strong resistance level? I am also curious if the RSI nearing 70 indicates an overbought condition, suggesting a potential pullback might be coming. I am trying to learn how to interpret these signals together.
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Also, how much weight should I give to the Bollinger Bands in this scenario? The upper band seems close to the current price of EURUSD.
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Update: I see the price has slightly broken past the 200 SMA level. Does this invalidate the resistance I mentioned earlier, or should I wait for further confirmation?
@rajesh9339, you're right, the 200 SMA often acts as a significant resistance. However, it's not foolproof. And yes, an RSI approaching 70 can suggest overbought conditions, but it's best used in conjunction with other indicators for confirmation before anticipating a pullback.