It’s all about the euro on today’s canvas, as we look at potential forex trades on EUR/GBP and EUR/JPY’s short and longer-term charts. Get ’em while they’re hot!
EUR/JPY has been on a slow and steady downtrend since mid-April, but it looks like the bulls are doing a good job in defending the 122.60 handle.
Downtrend and a solid support? That’s a possible descending triangle right there! Can the bears break below the support and maintain their momentum?
I’m not seeing any immediate support below 122.60, so a break below the level just might drag EUR/JPY down to 120.00 or even its 118.80 lows from back in January.
Think the bulls will hold the fort for another day? You might want to watch out for a break above the trend line that we’ve marked and wait for a potential trip back to the 123.50 or 124.25 previous areas of interest.
Here’s one for the range playas out there! After breaking below a long-term range back in late February, EUR/GBP bulls and bears have decided to…just chill below the range.
The pair is now knocking on the .8700 previous range support, which is convenient when you consider that Stochastic is flashing an overbought signal.
Shorting at current levels would give you a good reward-to-risk ratio especially if EUR/GBP drops back down to its .8500 March lows after a retest of the .8700 mark.
If you’d rather buy the euro against the pound, however, then y’all should wait for EUR/GBP to actually go back up to the broken range levels before you pull any trigger.
Whichever bias you’re trading today, make sure you follow your trading plan to a tee! Gotta make sure you can trade for another day, amirite?