We’re looking at TWO potential euro winners today and, no, it has nothing to do with Eurovision. I’m talking about EUR/USD and EUR/NZD’s charts. Check them out!
EUR/USD is having trouble trading above the 1.1350 handle, which isn’t surprising since the area lines up with a falling trend line that has been intact since July 2018.
What makes the setup more interesting is that 1.1350 is also around the 100 SMA on the daily chart. Coincidence? I don’t think so!
Shorting at current levels is your best bet if you think that the euro will extend its downtrend and trade below its 1.1120 previous lows.
If you’re still trading the “triangle breakout” play that we’ve identified a week back, however, then you might want to wait for a bit of momentum before you place your bets on further upside moves.
Watch this one closely, brothas!
It looks like EUR/NZD bears are having a blast defending the 1.7200 major psychological handle!
And why not? 1.7200 has been an area of interest for EUR/NZD since October 2017. Not only that, but the daily chart is also hinting of a potential bearish divergence!
Before you place your shorts like there’s no tomorrow, you should also note that there’s no bearish momentum on the chart just yet. That means we could still see an upside breakout if the bulls get enough euro fanboys on their side!
Shorting at the earliest signs of bearish momentum could still give you a good reward-to-risk ratio especially if EUR/NZD drops back to its 1.6325 lows.
If you’re #TeamEuro, though, then you could also wait for a clear break above 1.7200 before you target the 1.7450 or 1.7800 previous highs.