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Trend warriors gather ’round!

Today we’re looking at not one, but TWO short-term trends for opportunities.

Would you rather trade EUR/USD or CHF/JPY‘s setup?

EUR/USD: 1-hour

EUR/USD 1-hour Forex Chart
EUR/USD 1-hour Forex Chart

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.

Will euro bulls pounce at the opportunity? Buying at the first signs of bullish pressure would yield a good reward-to-risk ratio especially if EUR/USD makes new October highs this week.

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!

CHF/JPY: 1-hour

CHF/JPY 1-hour Forex Chart
CHF/JPY 1-hour Forex Chart

Here’s an easy peasy one for ya!

CHF/JPY is trading around the 115.80 zone, which is right smack at a 50% Fib retracement, 100 SMA, and rising trend line support on the 1-hour time frame.

The next direction is a bit easier to spot than EUR/USD’s just because the pair is already 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.

Forex Chart Settings:

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