Whether you’re bullish or bearish on the euro these days, I’ve got these potential setups you might wanna see!
Check out the short-term breakout on EUR/USD and this long-term pullback on EUR/GBP.
EUR/USD: 1-hour
EUR/USD 1-hour Forex Chart
After nearly a couple of weeks of selling off, this pair was finally able to pull up from its drop!
EUR/USD even managed to bust through its short-term falling trend line, hinting that a reversal from the downtrend is in order. However, technical indicators are still pointing to a decline.
The 100 SMA is below the 200 SMA to show that bearish momentum is present, and Stochastic is heading south from the overbought zone so price could follow suit.Then again, the pair might simply make a retest of the broken trend line resistance, which happens to line up with the 50% Fib and 1.0950 minor psychological mark.
If this area of interest is enough to keep losses in check, EUR/USD might make its way back up to the swing high around the 1.1100 and beyond. Better keep your eyes peeled for bullish candlesticks on the Fib levels then!
EUR/GBP: Daily
EUR/GBP Daily Forex Chart
Betting on the euro selloff to carry on? Here’s a neat channel setup on the daily chart of EUR/GBP.
The pair is inching closer to testing the top of the channel around the .8400 major psychological mark. That’s right smack in line with the 100 SMA dynamic resistance, which is below the 200 SMA to confirm that the ceiling is likely to hold.If so, EUR/GBP could fall back to the channel bottom around the .8200 mark or the mid-channel area of interest near .8300.
Stochastic has some room to head north, though, which means buyers might have a bit more energy left. A break past the channel top could still encounter strong resistance at the 200 SMA dynamic inflection point.
Just be sure to set your stops right if you’re planning on trading this one!
