Welcome to a brand spankin’ new trading week! Hit the ground running with these easy peasy setups on EUR/USD and USD/JPY!
I spy with my cool, blue eyes an ascending triangle in the making! EUR/USD has just bounced from the 1.1175 area, which is right around a rising triangle support on the 1-hour time frame.
If the pair is headed for the 1.1270 resistance, then we could be looking at a possible ascending triangle breakout in the foreseeable future.
Buying at current levels could make for a good trade if you’re confident that the euro will leave the Greenback eating dust. But if you’ve read the part in the triangles lesson about ascending triangles also breaking lower, then you could also choose to wait for either and upside or downside breakout instead before entering any orders.
In any case, make sure you practice good risk management with your trading execution!
USD/JPY found resistance at the 110.50 psychological handle, which lines up with what looks like a falling channel resistance on the 1-hour time frame.
Shorting at current levels – especially since it’s near the 200 SMA – could get you a good reward-to-risk ratio especially if you aim for the pair’s previous lows.
Don’t get too excited, though, as the bulls could always take advantage of the higher lows that we’re seeing and push for a move back up to the mid-May highs near 112.00.