Are European currencies in trouble?
Judging by the swing trade charts, the euro and pound could be headed for more losses against the franc and yen.
Guppy just broke below a low-key consolidation on the 4-hour chart, which is a BFD since GBP/JPY just bounced from a descending channel AND 100 SMA resistance on the 4-hour chart.Think pound bears can keep up GBP/JPY’s downtrend? Shorting at current levels would give you a good reward-to-risk ratio especially if you place your stops just above the trend line resistance and aim for previous lows near 129.50.
Just make sure that you know where to place your stops whichever bias you choose to trade today!
If you’d like clues on how far this pair can go in a day, then y’all better make some form of volatility analysis before you place them orders.
Here’s a longer-term downtrend for the trend fans out there!
Told ya it’s long term!Shorting at current levels would yield decent pips especially if EUR/CHF drops back down to its 1.0500 support.
Before you short the euro like there’s no tomorrow, though, you gotta know that consolidations at the bottom of strong trends CAN lead to reversals.
That means you gotta be careful with your stops and make sure you’re flexible enough in case the euro kicks the franc’s butt!
For those who are looking to go long EUR/CHF, you might want to wait for a break above the trend line and 100 SMA and then target potential trips to the 200 SMA or the 1.0850 and 1.1050 handles.