Remember that short-term downtrend that we spotted earlier this month? EUR/CHF is now less than 200 pips down from those level, man!
Is it too late to jump on the downtrend? Based on the recent trend line bounce, it looks like the bears are still game for more selling.
You can short at current levels and target at least the previous lows if you think that the euro will continue to see losses against the franc. Of course, it doesn’t hurt that MarketMilk is still pointing to a “bearish” trend all around on the 1-hour time frame.
Think the euro is due for a reversal instead? You might want to wait for a clear break above the trend line and the SMAs before you consider a breakout trade.
Whichever bias you’re trading today, make sure you practice good risk management like it’s the last trade you’ll ever manage!
Here’s one for the range traders out there! EUR/JPY is knocking on the 119.75 zone, which lines up with a support and resistance area on the daily time frame.
What makes the potential retest more interesting is that oscillators like stochastic are signalling EUR/JPY’s “oversold” conditions on the chart.
Buying at the first signs of a bounce would give you a good reward-to-risk ratio especially if the euro bounces all the way to its 122.50 range resistance level.
If you’d rather short the euro against the yen, however, then you can wait for a break below the range and aim for a potential move to the 118.75 or 118.00.
What do you think? Which way will EUR/JPY go?