It might not be too late to catch the post-ECB euro slide with these momentum plays on EUR/JPY and EUR/GBP. Check ’em while they’re fresh!
Still holdin’ like a boss! This descending channel on the daily time frame of EUR/GBP is staying intact as price bounced off the resistance again.
The 200 SMA dynamic inflection point reinforced the ceiling at the top of the channel, possibly sending the pair back to the bottom around the .8500 levels. Plus, the 100 SMA is below this longer-term moving average to confirm that the path of least resistance is to the downside.
Stochastic is also turning lower without even hitting overbought levels, which suggests that sellers are eager to get back in the game. Just watch out for potential support at the mid-channel area of interest, though!
If my groovy shades ain’t deceiving me, I’m seeing a tiny double top at the bounce off the descending channel resistance and area of interest on EUR/JPY.
Price also seems to have broken below the reversal pattern’s neckline to confirm a selloff, likely taking this pair down to the channel then probably to the very bottom.However, stochastic is already dipping in oversold territory, which means that sellers are feeling exhausted at this point and might let buyers take over. In that case, another test of the support-turned-resistance could be in the cards before EUR/JPY heads further south.