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EUR/USD is fast approaching the 1.2160 zone that has been a major inflection point for the pair since early December.This time around, 1.2160 represents a triangle resistance on the 1-hour time frame.
A bearish bounce from the level could drag the euro back to its trend line support.
Meanwhile, a break above the resistance could lead to as much as a 200-pip upswing for EUR/USD. That’s because triangle breakouts tend to be as wide as the base of the triangle!
What do you think? Is EUR/USD ready to revisit its 2021 highs?
Breakout patterns not your thing? That’s alright, you can also trade this nice and simple trend play on GBP/NZD.
The pair just got rejected at the 1.9400 major psychological handle, yo!And why not? As you can see, 1.9400 lines up with the daily chart’s 200 SMA as well as a descending channel resistance that’s been preventing the bulls from taking over since mid-August 2020.
Can the bears hold the channel resistance for another day? Shorting at current levels is your best bet if you’re planning on trading the trend and aiming for the 1.8700 lows.
If you’re more into pound-buying, though, then you’ll definitely want to wait for a clear break above the channel and the 200 SMA before you target previous inflection points like 1.9750 or 2.0000