It’s all about the euro on today’s canvas, as I bring to you short-term forex trade opportunities on EUR/GBP and EUR/CHF. Check ’em out, yo!
Countertrend traders huddle up! EUR/GBP is finding support at the .8850 minor psychological handle, which is right smack at a falling channel support on the 1-hour time frame. What makes the setup even more interesting is that stochastic has also hit oversold territory.
Buying at current levels and targeting the .8950 channel resistance area could get you a good reward-to-risk ratio if you’re confident that the common currency would see some retracement against the franc in the next couple of trading sessions.
But remember that not everyone is psychologically fit for countertrend trading. If you’d rather go with the trend and short the euro, then you could either wait for a bounce to the mid-channel and channel resistance areas or wait for a downside breakout before entering your shorts.
Here’s one for the euro bulls out there! EUR/CHF is lollygagging at the 1.1600 psychological area, which lines up with a mid-channel AND 100 SMA support on the 1-hour time frame.
With stochastic already flashing an oversold signal, you can bet your pips (with proper risk management, of course) that other short-term bulls are already watching.
Buying at the earliest signs of a bounce could make for a good trade especially if the pair revisits its 1.1700 highs. If you’d rather maximize the move, though, then you could also wait for a retest of the channel support near the 200 SMA before putting in your orders.
Finally, you could also wait for a break below the channel and trade a downside breakout instead if you’re not feelin’ the love for the euro these days.