Who’s looking for more setups?
We’re taking a closer look at European currencies today.
Check out EUR/USD’s downtrend and GBP/CHF’s high key resistance zone and see if you can sneak in a pip or two!
EUR/USD bears have been partying since the start of the month when the 1.1900 held as resistance.Bulls and bears are now butting heads at the 1.1800 major psychological handle, which is around the 100 SMA and the top of a descending channel on the 1-hour time frame.
Shorting at current levels would yield a good risk ratio especially if EUR/USD drops back to this week’s lows and you place your stops just above the 100 SMA.
Not convinced that EUR/USD is headed lower? Wait for a clear break above the channel and see if the euro has enough momentum to revisit its 2021 highs.
I spy with my eye a resistance zone that shouldn’t be missed! GBP/CHF is having trouble sustaining its upswing above 1.2750.And why not? The 1.2800 psychological handle that had held as resistance since April 2021 is juuust above the pound’s current prices!
This time around, there’s also a small bearish divergence on the 4-hour chart.
Will pound bears step in again this week? Long-term traders who don’t mind waiting for an actual test of 1.2800 can short at current levels and target August’s lows for a good risk ratio.
Of course, it’s possible that the bulls are just getting more friends before they force an upside breakout.
If you see GBP/CHF trading above 1.2800, then you can start scaling in for a trip back to the 1.3000 previous resistance.