If break-and-retest plays are your jam, then you should see these neat pullback setups on EUR/JPY and EUR/AUD.
Will the areas of interest hold?
EUR/JPY: 4-hour
EUR/JPY 4-hour Forex Chart
This pair recently fell through a shallow rising trend line visible on its 4-hour time frame, and now price is pulling up for a retest.
Now the broken support lines up with the 61.8% Fibonacci retracement level, which could make it a prime entry spot for euro bears. If that’s the case, EUR/JPY could slide back to the swing low or even lower!Oh, and did I mention that the 200 SMA dynamic resistance coincides with this area of interest, too?
Technical indicators support a continuation of the slide, as the 100 SMA is below the 200 SMA to reflect the presence of bearish momentum. At the same time, Stochastic looks ready to turn south, which means that sellers are about to take over from here.
EUR/AUD: Daily
EUR/AUD Daily Forex Chart
EUR/AUD is also in correction mode, as the pair is pulling up from its sharp dive from earlier this month. Price has already climbed to the 38.2% Fib but might still be down for a larger retracement.
Stochastic is still on the move up anyway, which means that buyers still have the upper hand for now. The oscillator has some room to climb before reaching the overbought zone to reflect exhaustion.If so, we might see a test of the 50% level near the 1.5400 major psychological mark or the 61.8% Fib at 1.5600. These span a former support zone which might hold as a ceiling.
Note that the 100 SMA is below the 200 SMA to confirm that resistance levels are more likely to hold than to break. These indicators are near the highest Fib, adding another upside barrier on the pullback.
