Welcome to a brand spankin’ new trading week, homies! Let’s get you started with these hot short and long-term opportunities on EUR/USD and EUR/JPY!
Range traders huddle up! EUR/JPY has just bounced from the 132.00 major psychological handle, which isn’t surprising since the level has been holding the bears off since late September.
This time around a bullish divergence has popped up to encourage more buying. You can target the 132.50 mid-range level if you want to get a couple of quick pips or you could aim for the 133.00 range resistance if you’re confident about the euro’s prospects.
If you think that the euro will continue to see losses against the yen, though, then you could also wait for a break below the 132.00 MaPs with your breakout playbooks.
In any case, make sure y’all have wide stops, aight? Remember that crosses like these tend to see more volatility than the majors!
Next up is a textbook head and shoulders pattern for EUR/USD. As you can see, the pair has encountered resistance at the 1.1875 area, which lines up with the top of the “shoulders” on the daily time frame.
Keep an eye out for a bearish momentum that would take the euro down to the 1.1700 “neckline”. And since head and shoulders breakouts tend to be as strong as the height of the neckline to the top of the “head,” then we could be looking at a 300-pip breakout if the euro does break below the 1.1700 MaPs and 100 SMA.
The euro has yet to retest the support level, so y’all have time to whip up your trading plans. Don’t forget to make good risk management decisions when executing your trades, brothas!