Whattup, homies! Let’s end the week strong with these short and long-term setups on EUR/USD and EUR/GBP. Think you can gain pips from these hot plays?
After breaking above a falling trend line earlier this week, EUR/USD has encountered resistance at 1.1850 and is now headed lower.
The 1.1750 level is the area to watch in this case, as it lines up with not only the broken trend line, but also a 38.2% Fib AND the 100 SMA on the 1-hour time frame.
Buying at the earliest signs of a bounce is a good idea if you think that the euro will eventually hit 1.2000 against the Greenback.
If you think that we’re looking at a fakeout, though, then you could also wait for the pair to break below our support levels and aim for the previous lows near 1.1550.
I spy with my cool, bedroom eyes a potential reversal in the making! As you can see on the chart above, the pair sporting what looks like an evening star just as the pair hit the .9900 handle on the daily time frame.
Think we’re looking at a reversal over here? Shorting at current levels could give you a good reward-to-risk ratio especially if you aim for the previous lows near .8750.
Just make sure you place wide stops, aight? Currency crosses like these, especially when you use higher time frames, could see more volatility than your average currency pair!