Who’s up for looking at the majors today? I hope you are, because these swing trade setups on EUR/USD and USD/JPY are too good to miss!
EUR/USD has rocketed after bouncing from the 1.1300 area and is headed fast towards the 1.1550 minor psychological handle.
As you can see, the level lines up with not only a 50% Fib retracement, but also the 100 SMA and the previous support on the 4-hour time frame.
Think the bears are waiting at 1.1550? Shorting at the earliest signs of bearish momentum around the level is a good idea if you believe that EUR/USD will make new 2018 lows over the next couple of days.
If you’re one of them euro bulls, though, then you might want to wait until the common currency shoots above its June highs before you price in a longer-term reversal.
Trend traders huddle up! USD/JPY just hit the 110.00 major psychological level, which is right smack at a rising trend line 61.8% Fib retracement, AND the SMA crossover on the daily chart.
Buying at current levels is a good idea if you’re betting on USD/JPY extending its uptrend. If the pair drops below the trend line, however, then we might see the dollar get dragged down to the next area of interest near 106.70.
USD/JPY isn’t showing bullish candlesticks or momentum yet, so y’all still have time to whip up your trading plans and study different scenarios for this setup.
Good luck and good trading!