Welcome to the last trading day of the week! If you’re looking for your last-minute setups, then you might want to check out these charts on EUR/JPY and GBP/AUD. Get ’em while they’re hot!
EUR/JPY is having trouble trading above the 126.50 handle, which isn’t surprising since the level lines up with a channel resistance from the start of the year.
With a low-key bearish divergence forming on the 4-hour chart, is it time for the euro to give back some of its gains?
Shorting at the earliest signs of bearish momentum would give you a good reward-to-risk ratio especially if the euro drops back to the ascending channel support.
Before place your trading orders, though, you should know that countertrend trading isn’t for everyone. Make sure you can execute with discipline!
If you’re not feeling the countertrend vibes, then you can also wait for the pair to hit a support and present another buying opportunity. Maybe at the mid-channel line near the SMAs or an upside breakout?
GBP/AUD found resistance at the top of the channel and is now on its way to the 1.8550 minor psychological handle.
What makes the level more interesting is that it’s close to the 100 SMA on the daily chart.
Will the pound find support at the mid-channel level? Or can the bears drag it down to 1.8350 near the 200 SMA before it pops back up?
GBP/AUD is still a couple or pips or so away from the potential support levels, so y’all still have time to write down a trading plan if you’re planning on taking advantage of GBP/AUD’s trend.
How about you? What are you trading today?