It’s all about the dollar on today’s canvas, as we look at forex trade opportunities on EUR/USD and USD/JPY. Check it!
EUR/USD is having trouble trading above the 1.1350 MiPs, which isn’t surprising since the level lines up with a falling trend line retest AND the 100 and 200 SMAs on the 4-hour time frame.
Think the bears can extend the euro’s downtrend? A bounce from the area could drag the pair to the 1.1275 or 1.1225 previous lows and even make new 2018 lows.
If the pair breaks above the trend line, however, then we could see EUR/USD retest the 1.1400 psychological handle and probably make its way to new monthly highs.
Breakout traders huddle up! If you’ve been watching this symmetrical triangle like I am, then you’ll know that the pair is now back at the triangle support that’s also just above the 100 SMA on the daily time frame.
As the School of Pipsology tells us, triangle breakouts are usually as wide as the base of triangle. in this case, we’re talking about a 300-pip move or so.
Will we see a breakout today? Or will the dollar make its way back to the 113.70 triangle resistance?
Keep close tabs on this one and get ready with your breakout trading plans!