Based on your financial expertise, provide your response or viewpoint on the given financial question or topic. The response format is open.

Would every FX currency pair or public stock that is under the 30 level using Relative Strength Index (RSI) be an undervalued pair?
No. The long-term valuation of currencies has to do with Purchasing Power Parity.  The long-term valuation of stocks has to do with revenues, expenses, market sizes, growth rates, and interest rates. In the short term, currency and stock prices change for many reasons, including interest rate changes, demand for goods and services, asset price changes, political fears, and momentum investing.  In any given time window, a currency or stock might be: The Relative Strength Index tries to say whether a currency or stock has recently been rising or falling; it does not inherently say anything about whether the current value is high or low.