EUR/USD is trading around the 1.1100 major psychological handle, which is also around the 200 SMA on the 4-hour chart AND an ascending channel support that hasn’t been broken since mid-November.
Before you buy the euro like there’s no tomorrow, however, you should note that the current bearish swing still looks legit. Heck even MarketMilk is signaling that EUR/USD is still “bearish” on the 4-hour time frame!
Waiting for a bit of momentum is your best bet if you’re one of them euro bulls. You can place your stops just below the trend line and aim for one of them previous areas of interest near 1.1150 or 1.1200.
Feel like shorting the common currency instead? You might want to wait for a clear break below the trend line and trade a confirmed breakout instead.
Remember that downtrend that we spotted almost a month ago? Well, it looks like the bulls had more going for them than we thought. NZD/USD is now trading above the descending trend line but looks ready for a retest.
Are we looking at a potential break-and-retest play? The .6550 area is a good level to watch since it’s near the broken trend line, 200 SMA, and a 38.2% Fib retracement level.
The pair still has a few pips to go before reaching the area, so y’all still have time to structure a trading plan if you’re planning on trading this one.
Which way do you think will NZD/USD go? Will it extend its bullish run all the way to the .6900 levels? Or is the “breakout” from December just a fakeout?