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Welcome to mid-week trading, yo!

Whether you’re a day trader or you’re more into longer-term trades, you’ll definitely want to see what I got on EUR/JPY and EUR/AUD.

Check it!

EUR/JPY: 1-hour

EUR/JPY 1-hour Forex Chart
EUR/JPY 1-hour Forex Chart

EUR/JPY is consolidating in what looks like a descending triangle after rising by a cool 400 pips from late June to this week.

Are we looking at a reversal in the making? Or are euro bulls just taking a breather?

While descending triangles tend to break to the downside, they still represent indecision which could lead to breakout in EITHER direction.

A break below the 123.00 triangle support could drag the euro all the way to the 122.00 previous resistance zone.

An upside break, on the other hand, could push EUR/JPY all the way to 124.25 or 125.25 areas of interest.

What do you think? Which way will EUR/JPY go?

EUR/AUD: Daily

EUR/AUD Daily Forex Chart
EUR/AUD Daily Forex Chart

I spy with my eye a double bottom play in the making!

As you can see, EUR/AUD has found support at the 1.6100 psychological handle twice in the last couple of weeks.

Will the pair break above the 1.6400 “neckline?” Or will the pair range until it finds new direction?

Shorting at current levels would yield the best reward-to-risk ratio if you believe that the euro would go back to the 1.6100 support.

If you’re on the bull camp, however, and you think that EUR/AUD will soon revisit its 2019 levels, then you can also wait for a break above the 1.6400 mark and then scale up your positions until the bullish swing runs out of steam.

Good luck and good trading this one!

Forex Chart Settings:

Slow Stochastic: 14,3,3
100 SMA: Blue line
200 SMA: Red line