Market sentiment seems quite bearish on EURUSD currently. The RSI below 40 and consistently breaking SMA levels indicate further downside potential. However, I'm wary of overnight gaps, especially during the Asian session. Prudent risk management is paramount.
Update: I'm considering a small short position around 1.1690, targeting 1.1670 as a potential TP. SL would be placed just above R1 at 1.1695 to limit risk. However, I'll wait for a confirmed bearish candle on the H4 timeframe before entering. A break below S2 could trigger a larger move towards 1.1650, but I'm not getting ahead of myself. Risk-reward ratio must be carefully considered before executing any trade. Let's see how the European session unfolds.
