Look alive, folks!
Whether you like trading the majors or you’re a bigger fan of currency crosses, I found setups that might interest you.
If EUR/USD doesn’t wait for a broken trend line retest, or if the 100 SMA crosses below the 200 SMA in the next few hours, then EUR/USD could start trading on a downtrend and maybe hit the 2021 lows near 1.2050 or even the area of interest closer to 1.1900.
But if more traders pay attention to EUR/USD’s longer-term uptrend, then we could see the pair trade back above the trend line and retest its January highs.
Keep close tabs on this one!
I spy with my eye range play in the making! GBP/CHF is fast approaching the 1.2190 range resistance that hasn’t been broken since April 2020.If that’s not enough to make you look twice, you should also know that the pair is sporting a bearish divergence on the daily time frame.
Can the bears defend 1.1900 for another day? Shorting at the first signs of bearish pressure would make for a sweet reward-to-risk ratio especially if you’re eyeing the 1.1675 range support as your profit target.
If you’re convinced that the pound will finally break above its 1.2190 resistance, however, then you’ll want to at least wait for a clear break and maybe even a retest before you aim for previous inflection points like 1.2450 or 1.2800.