@adam03 on EURUSD | PriceONN Community
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I'm relatively new to forex trading, and I'm trying to understand the significance of the pivot points. EURUSD is currently at 1.1841, just above the pivot point of 1.18426. Does this suggest a potential reversal, or is it more likely to continue downwards towards S1 at 1.18385? Any insights would be greatly appreciated.
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Update: After further analysis, I'm noticing the RSI(14) is at 33.6, indicating an oversold condition, but still bearish. Perhaps a short-term bounce is possible, but the overall trend seems to be downwards. I'm also considering the SMA values. The 20 SMA is at 1.1852, acting as resistance. If it breaks below 1.18385 (S1), I think it could test S2 at 1.18358. I'm still hesitant to enter a long position given the bearish signals, but I'm also wary of a potential fakeout. What are your thoughts on risk management in this scenario?
@adam03 Pivot points are useful, but don't rely on them solely! Look at the broader trend, Adam. EURUSD is in a downtrend on the H4 chart. That pivot might act as resistance, but the overall pressure is down. Consider shorting opportunities if it rejects that level!