It’s all about the euro on today’s canvas, as we play around with short and swing-term forex trade opportunities on EUR/USD and EUR/NZD. Which one of these would you most likely trade?
EUR/USD is having trouble trading below the 1.1350 mark, which isn’t surprising since the level is right around the ascending channel support that hasn’t been broken since mid-February. What’s more, it’s also around the 200 SMA on the 1-hour time frame!
A long trade at the earliest signs of bullish momentum could give you a good reward-to-risk ratio especially if the euro pops up to the previous highs near 1.1400.
If you’re not a fan of the euro, though, then you could also wait for the pair to convincingly break below the channel and SMA support levels.
Whichever direction you choose to trade, make sure you’re practicing good risk management decisions when you execute your trading plans!
Not feelin’ the love for the euro? Here’s a setup for ya!
See, EUR/NZD is struggling to break above the 1.6700 major psychological handle that marks the descending channel resistance on the 4-hour time frame.
Can the bears extend the euro’s downtrend against the Kiwi? The pair has yet to see bearish momentum, so there’s a chance that the bulls can force an upside breakout over the next couple of hours.
Fortunately for trend players, stochastic is also flashing an overbought signal that could tip the scales in favor of the bears.
If you’re betting on a trend extension, then you can short the euro as soon as you see the start of another bearish momentum.
Think the euro will actually break higher against the Kiwi? No worries, it’s easy to spot an upside breakout if the common currency does break higher and make a play for its previous highs near 1.6850 or 1.6950.