We’re all about the dollar today, forex brothas!
EUR/USD is hitting a channel resistance while USD/JPY is turning lower just as it reached a range ceiling.
What do you think of these setups?
Did you know that EUR/USD has been on a downtrend since the start of the month?Bears have another chance today because the euro has is hanging around the 1.1725 levels near a channel resistance retest AND the 100 SMA on the 1-hour chart.
You can sell at the earliest signs of selling momentum but you gotta be flexible in your biases because EUR/USD can easily extend the lowkey range-y price action that’s been going on since last week.
Think we’ll see EUR/USD reverse to the upside instead?
Watch out for a firm close and then some chillin’ above the 200 SMA, which could bump up the euro to the 1.1760 or 1.1800 previous resistance levels.
Who’s up for some range trading?Dollar bears look determined to defend the 110.50 psychological level because USD/JPY just turned lower for the nth time since mid-July.
Is it time to sell USD/JPY?
Stochastic is on the bears’ side with its overbought signal so you’ll want to at least think about shorting the dollar until it hits potential buy zones near 110.00 – 110.25.
But what if USD/JPY finally breaks above its months-long range?
Look out for a clear break above September’s highs because it could lead to a trip back to the 111.00 or 111.60 previous highs!