I’m seeing fresh opportunities to hop in the EUR uptrend!
Check out these channel pullback plays on EUR/JPY and EUR/NZD.
First up, we’ve got this simple ascending channel setup on the 4-hour chart of EUR/JPY.
The pair is in correction mode and is currently testing support around the 38.2% Fib, which is right smack in line with the mid-channel area of interest.If this is enough to hold as a floor, price could make its way back up to the swing high at 140.66 or the channel top closer to the 141.00 handle.
If euro bulls aren’t quite ready to charge just yet, a larger correction to the 50% level at 138.00 or the 61.8% Fib closer to the channel bottom might attract more buying pressure.
Note that the channel support is also close to the dynamic support at the moving averages and the 137.50 minor psychological mark, which makes it a prime spot to go long.
Here’s another bullish trend pullback happening on the hourly time frame of EUR/NZD!
The pair is hanging out at the mid-channel area of interest, which lines up with the 38.2% Fibonacci retracement level and former resistance zone.Note that price already came off a quick dip to the 50% Fib that coincides with the 200 SMA dynamic inflection point, which suggests that a bounce might already be taking place.
If so, EUR/NZD might already be on its way to test the swing high at 1.6473 or the channel resistance closer to the 1.6500 major psychological mark.
The 100 SMA is safely above the 200 SMA to confirm that the path of least resistance is to the upside or that the rally is likely to gain traction. Stochastic is also moving north, so price could keep following suit while bullish momentum is present.
Still, a larger pullback to the 61.8% Fib near the channel support and 1.6200 mark might offer a better reward-to-risk ratio if it happens.
Don’t forget to practice proper risk management when trading these setups!