It’s the start of a brand spankin’ new quarter, and I’ve got these neat trade setups lined up for EUR/JPY, EUR/GBP, and GBP/JPY to kick things off this week.
Last week’s EUR/JPY rally hit a roadblock around the 134.00 handle, and it turns out this was around the top of its long-term rising wedge pattern visible on the daily time frame.
The pair is now retreating back to support around the 132.00 mark but could be in for more declines as stochastic has a lot of room to head lower. There are a lot of nearby short-term support levels that could keep losses in check, but a steady drop could last by around a couple of thousand pips, which is approximately the same height as the wedge formation.
- WO: 132.86
- Top WATR: 133.96
- Bottom WATR: 131.76
- PWH: 134.25
- PWL: 131.74
I’ve had my one good eye on this potential break-and-retest setup on Guppy last week, and it looks like the pair is still in correction mode for now. A small head and shoulders pattern could also be seen if you squint hard enough or look at the 1-hour or 15-minute time frames.If pound bears take over, this could pave the way for a pullback to the 38.2% Fibonacci retracement level that coincides with a former resistance zone around the 147.50-148.00 levels.
A larger correction could last until the 61.8% Fib at the 144.50 minor psychological mark, but this would be the line in the sand for the uptrend. If pound bulls are eager to charge, they could still push for an upside break of the swing high close to the 153.00 handle right away.
- WO: 150.52
- Top WATR: 152.05
- Bottom WATR: 149.00
- PWH: 152.27
- PWL: 149.77
This pair was previously consolidating in a symmetrical triangle formation but seems to be forming a descending channel recently. In fact, price is currently testing the resistance around .8840 and could be in for a move back to support around .8700.
Stochastic is pointing down to show that sellers are in control of EUR/GBP price action, but the oscillator is also approaching oversold levels to signal that buyers might take over soon. If so, the mid-channel area of interest could hold and put the pair back on track towards testing the channel resistance again.
- WO: .8818
- Top WATR: .8887
- Bottom WATR .8750
- PWH: .8841
- PWL: .8746
This content is strictly for informational purposes only and does not constitute as investment advice. Trading any financial market involves risk. Please read our Risk Disclosure to make sure you understand the risks involved.