Can you believe we’re already into the middle of the week? Time to get your mid-week pips with not one, but TWO euro-related setups on today’s list!
EUR/AUD just flirted with the 1.6250 area, which is right smack at a 50% Fibonacci retracement AND the 200 SMA on the 1-hour time frame. What’s more, it’s also near a previous resistance level!
Will the bulls gain momentum now that EUR/AUD has started to bounce from the area of interest?
EUR/AUD’s previous highs near 1.1650 is a good initial profit target if you believe that the euro is headed higher against the Aussie.
If you’re convinced that we’re looking at a retracement rather than a reversal, however, then you could also wait for EUR/AUD to close below the 200 SMA and sport some bearish momentum before you place any short trades.
After breaking below a falling trend line a couple of days ago, EUR/JPY is back below the 121.50 levels. That’s around the previous trend line, yo!
Are we looking at a potential resistance-turned-support situation over here? The pair hasn’t shown a lot of bullish momentum after hitting the trend line support, so y’all need to chill first if you’re thinking of buying with the 123.00 June highs in sight.
Think the upside “breakout” was actually a fakeout and that EUR/JPY will return to its downtrend instead?
Wait for a convincing break below the trend line (or maybe even new June lows) before you place your short orders.
Whichever bias you choose to trade, make sure you place wide stops, ya hear? Currency crosses like these tend to see more volatility than the majors, so it’s possible for EUR/JPY to move around a bit before it follows another trend.