Yo! I’ve got me eyes on the euro in today’s intraday charts update, with a channel on EUR/JPY and a trend line play on EUR/NZD. Check ’em!
EUR/JPY has been trending lower recently while contained inside that there descending channel.
And presently, the pair is swinging higher after testing the channel’s support area. Y’all therefore better get ready to start lookin’ for opportunities to go short if or when the pair does reach the channel’s resistance area, which should be at or just below the area of interest at 129.50
And if the pair does resume its downward move, then them bears will likely be gunning for 126.60 next.
However, do note that stochastic is already signaling oversold conditions and all that. Moreover, the pair is presently hesitating at the area of interest at 128.60.
As such, there’s presently a risk for an upside channel breakout, so y’all may wanna prepare for such a scenario as well. Just remember that if such a scenario plays out, then them bulls need to clear 130.60 first before the upside channel break is confirmed.
In any case, just make sure to practice proper risk management should you find a trade based on this chart, alright?
No fancy chart patterns on this chart. What we have here is a simple rising trend line play.
As y’all can see, the pair is about to test that there rising trend line, which gives us two major scenarios: (1) the trend line holds or (2) the trend line breaks.
Both scenarios are equally valid, so it may be prudent to prepare for both. However, do note that a downside break is currently the more likely scenario.
First off, see them moving averages? That’s right! They just recently crossed over into downtrend mode, which is a sign that the uptrend may be over and that the trend may be switching.
Another is the way the pair has been hugging the trend line. If bullish interest is strong, then the pair will be swinging higher while pushing off from the trend line. Instead, the pair remains close to the trend line, which implies that bearish pressure is building up but them bulls ain’t ready to give up just yet.
Anyhow, a downside trend line break needs to smash past 1.6030 on strong bearish momentum in order to confirm the break. But if the break is confirmed, then them bears will likely be shooting for 1.5860 and 1.5710 next.
However, if the trend line holds, then just make sure to keep an eye on how the pair reacts to 1.6220 since that price area has been serving as resistance recently.