We’re talkin’ about the euro today, forex friends! Check out EUR/JPY and EUR/CHF’s 4-hour charts and see if you can get last-minute pips from their setups!
Remember that mid-channel play that we talked about a few days back? Well, the bulls ended up pushing the euro higher after all!
Can they maintain their momentum now that EUR/CHF is hitting an area of interest? As you can see, the pair is now flirting with the 1.0900 major psychological level, which is a hair’s breadth away from the 200 SMA on the 4-hour chart.
I’m not seeing any bearish momentum just yet, so y’all still have time to draw trading plans if you’re trading this one.
A short trade at the earliest signs of selling pressure would give yo a good reward-to-risk ratio if you think that EUR/CHF will drop below its August lows in the next couple of days.
If you think that EUR/CHF’s downtrend has run its course, however, then you could also wait for a break above the channel AND the 200 SMA and then execute your breakout strategies.
Good luck and good trading this setup!
EUR/JPY just got rejected around the 117.75 area, which isn’t surprising since the level has served as support AND resistance for the pair throughout the month.
Shorting at current levels and placing stops above the 100 SMA could work for you if you think that this week’s rejection at 117.75 would lead to EUR/JPY making new 2019 lows.
If you’re one of them euro bulls, however, then you could also wait for the pair to break above the 100 SMA and August’s highs before you enter any long trades.
Of course, if you’re not feeling any of these setups, then you could also choose to sit in the sidelines. No use forcing a trade when you’re not confident about your odds, amirite?