Trend warriors huddle up! Whether you’re after a retracement or a reversal, I got yo back with these sweet chart opportunities on EUR/JPY and GBP/AUD.
What makes the pattern more interesting today is that the 100 SMA has also just crossed below the 200 SMA on the 1-hour time frame. Coincidence? Only if you want it to be!
The cherry on top is EUR/JPY’s 1-hour MarketMilk™ trend profile also favoring the bears:
Shorting at a break below the triangle is your best bet if you believe that it’s time for the euro to lose pips against the yen.
Not sold on potential euro losses? You might want to wait for a break above October’s highs before you pull the trigger on your long trades.
Good luck trading this one!
Not comfortable trading reversals? Here’s a trend play for ya! A couple of days ago we identified a potential retracement level after GBP/AUD broke above an ascending channel.Well, it’s almost P-Day (P is for pips lol)! GBP/AUD is now flirting with the 1.8750 area, which is right smack at the broken channel resistance AND is just above a 38.2% Fib retracement and the 100 SMA on the 4-hour chart.
Buying at the 38.2% Fib area is a good idea if you believe that the pound will soon extend its gains against the Aussie.
If you think that GBP/AUD’s momentum will lead to a test of the lower Fib levels inside the channel, however, then you could also wait for a bit of bullish momentum before you place your orders.
Whichever strategy you choose to trade, make sure you’re paying attention to your reward-to-risk ratios and risk management decisions!