Welcome to mid-week trading, forex brothas!
Let me know what you think!
Earlier this week, we looked at EUR/GBP possibly bouncing from a short-term range support.The bulls did have control for a while, but the bears attacked around the mid-range levels and didn’t let go until EUR/GBP dropped to the .8590 area.
EUR/GBP is back at .8640, but now the broken range support lines up with a 38.2% Fib retracement of the euro’s last downswing. Not only that, but the 100 SMA has now crossed below the 200 SMA!
Are we seeing a legit breakout? Sellers can short at current levels, place their stops just above the SMAs, and then target this week’s lows for a decent risk ratio.
Feel like trading the majors instead? Here’s one for ya!USD/JPY is chillin’ at the 108.00 major psychological handle that also happens to line up with a 50% Fib retracement and a trend line support that hasn’t been broken since the start of the year.
Buying at current levels or at the first signs of bullish momentum is a good idea if you’re betting on USD/JPY jumping back to its March highs.
If you’d rather short the dollar against the yen, however, then you’ll want to do it if or when USD/JPY trades firmly below the trend line support. An SMA crossover wouldn’t hurt either.