Yo! I’m ending this week’s intraday charts update with a couple of channels on the euro, with EUR/JPY and EUR/GBP in focus.
EUR/JPY has been tilting to the downside lately. And if we connect the most recent peaks and troughs on its 1-hour chart, then we can see that a fresh descending channel has formed.
And as y’all can see, the pair is currently testing the channel’s resistance area. Y’all therefore better start lookin’ for an opportunity to go short. And all the more so, given that stochastic is already signaling overbought conditions and all that.
Do note, however, that the nearest area of interest is at 132.80, so there’s a chance that the pair may temporarily break to the topside of the channel. But if 132.80 holds, then everything should be cool.
But in the unlikely event that 132.80 fails to act as resistance, then be ready to bail yo shorts, especially if the pair clears 134.00.
However, of 132.80 does hold, then them bears will likely be gunning for 131.90 and 131.30 next.
If you’re more bullish on the euro (or you’re just bearish on the pound), then check out that there ascending channel on EUR/GBP’s 1-hour chart.
The pair has been hugging the channel’s resistance area for quite some time and stochastic has been signaling overbought conditions for a while to boot. As such, there’s a good chance that the pair may pull back to test the channel’s support area, which should be at or just above 0.8930.
And if such a scenario plays out, and if support does form, then the bulls will be shooting for 0.8990 next.
However, if support fails to form and the pair stages a downside breakout, then y’all may wanna bail or even switch directional bias if the pair smashes past 0.8900.
In any case, just make sure to practice proper risk management, a’ight? Peace! I’m out! See y’all again next week!