It’s all about the euro on today’s canvas, as we play around with forex trade opportunities on EUR/GBP and EUR/AUD. Check it!
First up is a nice and simple trend play on EUR/GBP. The pair is having trouble making new lows below .8950, which isn’t surprising since it lines up with a trend line that has been solid since mid-June AND is right around the 100 and 200 SMAs on the 4-hour chart.
Stochastic is currently on the bulls’ side, so don’t be surprised if you see some bullish pressure. You can buy at current levels if you think that the euro will bounce back up to the .9100 previous highs.
If you’re not a fan of the euro, though, then you could also wait for a downside breakout and aim for the previous areas of interest near .8900 and .8830 instead.
Trend-trading not your thing? Here’s a range setup for ya! EUR/AUD is about to hit the 1.6100 major psychological handle, which is right smack at the major range resistance on the daily time frame.
Shorting at current levels would give you a good reward-to-risk ratio though you could also wait for a bit of momentum to jump in.
If you’d rather buy the euro, though, then you might want to wait for an upside breakout before you press the order buttons like there’s no tomorrow.
Whichever bias you’re trading, make sure you’re practicing good risk management, aight?