It’s all about the Greenback on today’s canvas, as we take a look at a possible breakout on USD/JPY and a range play on EUR/USD. Get ’em while they’re hot!
Remember that downtrend that we checked out yesterday? Well, it looks like the bulls aren’t done partying just yet!
The pair broke above the channel that we marked and even hit 110.50 before settling back down to the 110.00 mark. This opens up the pair to a break-and-retest scenario since 110.00 is a hair’s breadth away from the 200 SMA, previous channel resistance, and a rising trend line support that’s forming on the 1-hour chart.
Can the bulls sustain their momentum? You could buy at the earliest signs of bullish momentum if you feel that the dollar will hit new weekly highs this week. You could also wait to see how it reacts to the 100 SMA nearer to the rising trend line if you’d like a better entry opportunity.
But if you think that we’re just seeing a fakeout, then you could also short USD/JPY when it looks like the bulls have lost momentum.
Good luck and good trading!
As you can see, the 1.1550 handle has held as support for at least three times in the last couple of weeks. Does this mean that EUR/USD is done making new lows this year?
You could buy the euro at a bounce from the psychological level if you’re confident that the 1.1550 MiPs and stochastic’s oversold signals will all contribute to an SMA crossover and even a longer-term bounce for EUR/USD.
If you’re one of them euro bears, though, then you could also wait for new lows and trade a downside breakout instead.
Whichever bias you choose to trade, make sure you’re practicing good risk management in your execution!