I know it’s April Fools’ Day, but I hope these neat setups ain’t playin’ tricks with our eyes!
Check out these short-term and long-term trends on EUR/USD and EUR/GBP.
First up is this classic break-and-retest setup on the 4-hour chart of EUR/GBP.
See how the pair busted through its longer-term descending channel recently? Price might be in for a retest of this broken resistance, which happens to be in line with several inflection points.I’m seeing a newly-forming rising trend line connecting the lows, and another test of this support zone might occur around the 61.8% Fib level. A shallow correction could already find buyers at the 50% Fib that’s closer to the former channel top.
A bullish moving average crossover just took place to confirm that buyers have the upper hand and could soon take EUR/GBP back up to the swing high near the .8500 handle.
At the same time, Stochastic is closing in on the oversold region to indicate that sellers could take a break soon.
Here’s another bullish euro play on the hourly chart of EUR/USD!The pair is already testing the 50% Fibonacci retracement level that’s right around the mid-channel area of interest. If this holds as a floor, price could make its way back up to the swing high or the channel top.
However, a larger pullback might be in the cards since technical indicators are still reflecting the presence of selling pressure. Stochastic is heading south while the 100 SMA is below the 200 SMA, so a dip to the 61.8% Fib or channel bottom might follow.
Note that the gap between the moving averages is narrowing to hint at a possible bullish crossover. Also, Stochastic is approaching oversold territory, so turning higher would mean that buyers are back in action.