Can you believe it’s already the middle of the week? Let’s take a closer look at the euro today with these hot long-term setups on EUR/GBP and EUR/CAD. Get ’em while they’re hot!
First up is a nice and simple trend play on EUR/GBP. The pair is currently lollygagging around the .8800 major psychological handle, which lines up with not only the 100 SMA but also a channel resistance that hasn’t been broken since September last year.
With stochastic about to hit overbought status, you can bet your pips (with proper risk management, of course) that other bears area already watching this one.
Think the euro will soon extend its downtrend against the pound?
Shorting at current levels could give you a good reward-to-risk ratio especially if you place your stops just above the channel and aim for the previous lows near .8600.
If you’re one of them euro fans or pound bears, though, then you could also wait for the pair to break above the channel and try to shoot for the .8950 previous resistance or even new 2018 highs.
EUR/CAD seems to have taken a chill pill after hitting 1.6200 earlier this year. It’s now making its way to the 1.5200 psychological handle, which is right smack at a previous resistance for the pair.
What makes the 1.5200 area more interesting is that it’s also near the 200 SMA and a major rising trend line on the daily time frame. And with stochastic about to form a possible bullish divergence, y’all should consider drafting your trading plans stat.
Buying at the earliest signs of consolidation around the potential support could get you good pips especially if the euro shoots back up to its previous highs.
Of course, if you’re confident that the euro would go back down to the support levels that we’re watching, then you could also catch some countertrend action and short the common currency until we find some bullish momentum.