It’s all about the euro on today’s canvas, as we check out trend and range plays on EUR/CHF and EUR/CAD’s swing-term charts. Check them out!
EUR/CAD is lollygagging just below the 1.4700 mark, which isn’t surprising since the major psychological handle has been keeping the bears at bay since mid-July.
Will the resistance hold again this week? The odds are certainly in favor of the bears.
If you check EUR/CAD’s MarketMilk™ profile, you’ll see that almost all oscillators are flashing overbought signals on the 4-hour time frame:
But hey, nothing is a done deal in forex, namsayin’?
If you’d rather trade the euro’s upside momentum, though, then you could also wait for EUR/CAD to break above the 1.4700 mark before you execute your breakout plays.
Here’s one for the trend warriors out there! EUR/CHF is having trouble making new highs above 1.1000, which is just below a 38.2% Fib and is in line with previous support and resistance levels.What makes the chart interesting today is that there might be a divergence on the daily chart.
Think the euro will extend its losses against the franc? Shorting at the earliest signs of bearish momentum would give you decent pips especially if EUR/CHF makes new 2019 lows in the next couple of days.
Not feelin’ like shorting the euro this week? You can also wait for EUR/CHF to clear the 1.1150 mark near the 200 SMA and the 50% Fib retracement level and then consider making plays for the 1.1400 previous highs.
Whichever bias you end up trading, make sure to keep your stops wide! Remember that currency crosses (especially on higher time frames) tend to see more volatility than the majors. That means you gotta widen your stops to avoid getting stopped out too early!