Welcome to the last trading day of the week!
We’re all about the euro today as we explore the 4-hour charts of EUR/AUD and EUR/NZD.
Which setup would you rather trade?
EUR/AUD is trading juuust below the 1.4800 psychological handle and an ascending channel support that’s been around since April!More importantly, it’s trading below the 200 SMA long enough for the 100 SMA to turn lower and narrow the gap with the longer-term dynamic support.
Are we looking at a breakout in the making?
An extended stay below the 200 SMA could lead to the 100 SMA crossing below the 200 SMA. This could attract more bears and drag EUR/AUD firmly below the channel that we’ve marked.
A move higher, on the other hand, would mean that EUR bulls ain’t done buying just yet.
EUR/AUD could bounce above the trend line and revisit key areas of interest like 1.5100 or 1.5300.
EUR/NZD is consolidating inside what looks like a falling wedge after hitting highs near 1.6800.
What makes EUR/NZD’s current levels more interesting is that it’s finding support at the 200 SMA on the 4-hour time frame.A bounce from the 200 SMA and 1.6400 psychological handle could lead to an upside breakout from the pattern.
Watch out for a move back to 1.6550 or even the 1.6800 previous highs.
If you see EUR/NZD trading below the 200 SMA, however, then gotta be ready to trade a short-term reversal.
EUR/NZD may find support at the 1.6300 or 1.6150 inflection points.