Who’s up for trading the majors today? If you are, then I’ve got a hot short-term trend on USD/JPY and a neat EUR/USD retracement for you to see. Check it, forex brothas!
First up is a nice and simple uptrend on USD/JPY. The pair is curently finding support just below the 114.00 handle, which isn’t surprising since it’s right smack at a rising channel support on the 1-hour time frame.
With stochastic poppin’ up an oversold signal, you can bet your pips that other dollar playas are already watching this one.
A bounce from current levels could take the Greenback all the way to its previous highs near 114.75, while a break lower could drag it back down to its previous lows near 113.00.
Whichever side you bet on, make sure you make good risk management decisions when you execute your trades, aight?
Retracement playas huddle up! EUR/USD looks like it’s headed fast towards the 1.1450 level, which is not only near a 38.2% Fib retracement, but also lines up with a major area of interest from way back in 2015.
Before you place your orders at 1.1450, you should take note that the pair is already flashing a bullish divergence on the daily time frame. If bulls decide to pounce today, then we could see EUR/USD make its way to the 1.2000 handle.
But if the bears take control for another day, then we could see some tug-o-pips around the 1.1450 handle and maybe even a better entry for a bullish trade.
What do you think? Will EUR/USD hit the 1.1450 area, drop to a deeper retracement, or bounce higher from its current prices?