Is EURUSD going to zero or what? Total noob needs help understanding this drop

[Dave Cooper 16]

Hey everyone, I am super confused right now and hoping some of the more experienced folks here can drop some knowledge on a newbie. I was looking at my charts earlier and noticed the Euro just hit yearly lows, sliding way under 1.1300 down near 1.1265. Ngl, it feels like it has been bleeding for four straight days against the dollar and I am getting major fomo trying to figure out which way this thing is actually going.

I keep reading about high oil prices, US yields going up, and some debt drama in Europe, but my brain is kind of fried trying to connect the dots. Like, why does oil going up hurt the Euro so badly? And are US yields pulling all the money out of Europe right now? I am mostly just trying to swing trade small positions, but this kind of volatility makes me want to just hold cash and sit on my hands. Should I even bother trying to buy the dip here or is that just catching a falling knife? How are you guys playing this mess?

 

[Owen Carter 27]

Lol relax man, it's just hitting a decent macro support level on the daily chart. Price action doesn't go straight down forever, wait for a solid rejection candle before doing anything rash.

 

[LeoSterling]

[QUOTE="Owen Carter 27", post: 1486]Lol relax man, it's just hitting a decent macro support level on the daily chart. Price action doesn't go straight down forever, wait for a solid rejection candle before doing anything rash.[/QUOTE]

Bro acting like forex isn't just one massive leverage trap. Support levels are made to get smashed so the market makers can hunt your SL.

Noob, just buy some memecoins instead, at least the rug pulls are faster.

 

[Noah Vance BR]

@LeoSterling honestly isn't even wrong about the SL hunting part, FX is brutal with that. But telling a noob to jump into memecoins instead is just pure evil lmao.

OP, ignore the noise. If you're actually trying to trade this, stop looking at the absolute price and start calculating your risk-to-reward ratio. If your R:R is garbage, it doesn't matter if EURUSD goes to zero or bounces back to parity, you'll still blow your account either way. Backtest your entries and manage your leverage.

 

[Zakami Ng]

@Noah Vance BR is spot on about the R:R, but honestly, you guys are ignoring the actual momentum signals. If you look at the daily, we’ve got a massive bullish RSI divergence forming while that MACD line is finally starting to curl up toward a crossover. It’s not going to zero, but you definitely shouldn't be trying to catch a falling knife until the indicators actually confirm a shift. Watch for that MACD signal line break before you even think about putting on a long.

 

[Mason Brooks]

@Noah Vance BR hit the nail on the head. Everyone here is obsessed with technicals and RSI crossovers, but nobody is talking about how much of their account they’re willing to incinerate on a single trade. If you’re a "noob" asking if the currency is going to zero, you have no business taking a position until you’ve set a hard stop loss that keeps your max drawdown at 1% or less.

@LeoSterling is cynical, but he’s right about one thing: the market loves to hunt liquidity right around those support levels everyone is watching. Don't be the guy who puts his stop loss right where the institutional algorithms are aiming. Calculate your position size based on your entry and your exit, and if the R:R doesn't justify the risk, walk away. It’s not going to zero, but your account balance definitely will if you don't respect the math.

 

[Liam Walker]

It’s not going to zero, but you definitely shouldn't be trying to catch a falling knife until the indicators actually confirm a shift. Watch for that MACD signal line break before you even think about putting on a long.

This is precisely why most retail traders miss the biggest turns. By the time your MACD "confirms" the shift, half the move is already over and you’re just buying into the exhaustion leg.

I’m heavy long right here. Bottoms are supposed to look terrifying and ugly, not neat with pretty indicator crossovers. While everyone in this thread is wringing their hands waiting for permissions and perfect R:R setups, the real money is made catching the knife right off the blood in the streets.