Ready to hit the ground running this brand new month?
I know you like trading them European currencies so today we’re checking out GBP/USD and EUR/JPY’s charts.
Get ’em while they’re hot!
Breakout or fakeout? Cable made a play for an upside breakout earlier this week but the bears held their ground at the 1.3800 zone.GBP/USD is now trading just under 1.3750, which isn’t too far from the support of an ascending channel that’s forming on the 1-hour time frame.
Watch out for a dip to 1.3715, which is closer to the 200 SMA and mid-channel levels of the broken descending channel.
If the pound starts getting buyers without hitting the support zone that we’ve marked, though, then you can start aiming for this week’s highs or even the 1.3875 previous area of interest.
EUR/JPY: 4-hourLet’s goooo!!! EUR/JPY is having trouble breaking above the 130.00 major psychological handle after busting through a trend line resistance on the 4-hour time frame.
Can the euro extend its upswing against the yen? A break above 130.00 could lead to a move up to the 131.00 or 132.50 inflection points.
If the bears manage to defend the 130.00 area, however, then you can consider a possible pullback down to the 100 and 200 SMAs or even the 128.50 broken trend line levels. Heck, we might even see the euro dip to its 128.00 lows!
Watch this one closely, errbody!