It’s all about the euro on today’s canvas, as we take a look at forex pullback plays on EUR/AUD and EUR/CAD. Check ’em out while they’re hot!
Here’s an easy peasy one for trend playas out there! EUR/AUD looks like it’s about to turn from just below the 1.5400 handle, which isn’t surprising since the level is right up with the 100 SMA on the 1-hour time frame. In addition to that, it’s also between the 38.2% and 50% Fibonacci retracements! The cherry on top is an overbought stochastic signal.
Shorting at current levels could get you in on the downtrend at a good point if you believe that the euro’s downtrend will lead to new monthly lows in the next couple of days.
Remember to keep your stops wide, though, as currency crosses like these tend to see more volatility than the majors!
The 1.5000 major psychological handle was too hot for the bears to handle, which is why EUR/CAD is now about 200 pips from the level.
Does the bounce mean that the pair will go on its way up? It’s certainly possible especially since the 1.5000 handle is also supported by a rising trend line AND 200 SMA support.
Buying at current levels could give you a good reward-to-risk ratio especially if you aim for the 1.6100 handle and place your stops just below the trend line.
If you’re one of them euro bears, though, then you could also wait for a break below the support levels that we’re watching and trade a downside breakout instead.
Whichever bias you choose to trade, make sure you practice good risk management when you execute your plans, aight?