Trend warriors gather ’round!
Today we’re looking at not one, but TWO short-term trends for opportunities.
As you can see, EUR/USD has been cruisin’ along an ascending channel since late September.What makes current prices interesting today is that it’s having trouble making new lows below the 100 SMA, which is also just above the 1-hour ascending channel support.
Feel like the euro can still retest the 200 SMA or will break below the channel?
You can also place orders around the 200 SMA or see how the currency pair reacts to the support area before you jump on any short trade. Just make sure that you have a trading plan in place before you place orders in either direction!
Here’s an easy peasy one for ya!consolidating in an uber tight range.
The 200 SMA is a good initial target if CHF/JPY breaks below the trend line support. If the breakdown (downside breakout) has momentum, though, then you might want to see how it reacts to the 200 SMA first before you place any more orders.
If you’re one of them yen bears, then you can buy at current levels and target the top of the current (tight) consolidation for a few quick pips or place stops just below the trend line and aim for new October highs for a good risk ratio.