Ready to end the week on a strong note?
I hope you like trading them currency crosses because I got a back-to-back special for ya!
If you think that EUR/GBP is still inside a range, then you haven’t seen the descending channel on the 4-hour time frame.Not only is EUR/GBP being limited by a descending trend line, but it’s also bowing to the 100 and 200 SMAs on the chart.
Based on currency strength, it looks like the pound has been weakening against the euro.
Euro bears have another opportunity to short when EUR/GBP rises and tests the top of the channel and SMAs.
A short trade at the earliest signs of bearish momentum could work especially if you place your stops just above the 200 SMAs and target June’s lows in the next couple of days.
If you’d rather buy the euro against the pound, though, then you’ll want to do it when EUR/GBP clearly breaks above the trend line and SMAs.
I spy with my eye a potential reversal in the making!AUD/CAD is sporting what looks like a Double Bottom pattern on the daily time frame.
And if that’s not enough to get you making trading plans, then you should know that the pattern showed up near a long-term support zone.
A break above the .9400 “neckline” could push the Aussie to the .9550 zone closer to the SMAs.
Of course, it’s also possible that AUD/CAD is just taking a breather from its 2021 downtrend.
Look out for a break below the support area that we’re watching, which could drag AUD/CAD all the way to the .9100 previous area of interest.