It’s all about the euro on today’s canvas, as we play around with forex opportunities on EUR/JPY and EUR/CAD. Which setup is more tradable for you today?
Those who watched EUR/JPY’s triangle resistance setup earlier this week would want to know that the pair is now ABOVE the pattern.
That’s right! Not only has EUR/JPY broken above the triangle we drew, but it has also retested the trend line area at least once!
Planning on taking a break-and-retest trade? You might want to wait for EUR/JPY to make new June highs or for the 100 SMA to cross above the 200 SMA if you want the odds to tilt a bit further in your favor.
If you believe that the euro will soon drop back to the 121.00 triangle support, however, then you should probably wait until the euro drops below the broken trend line resistance and gain some momentum before unleashing your shorts.
Range traders huddle up! EUR/CAD is chillin’ like a villain around the 1.4900 major psychological handle, which lines up with a range support that hasn’t been broken since February this year.
If that’s not enough to get you excited, then you should also know that stochastic is currently flashing an oversold signal on the 4-hour time frame.
Buying at current levels would give you a good reward-to-risk ratio especially if EUR/CAD pops back up to its 1.5150 range resistance.
If you’d rather short the euro, though, then you should wait for the pair to break below the 1.4900 support before you execute any short order.
Whichever bias you choose to trade, make sure you have a trading plan drafted and you stick to it like white on rice, ya hear?