Yo! I’m starting this week’s intraday charts update with a channel on USD/CHF and a Fibonacci play on EUR/JPY. Check ’em out!
EUR/JPY had been trending lower recently. However, the pair has been pulling back ever since support formed at 129.30.
However, there’s a chance that the pair may resume its downtrend since the pair is currently hesitating at the area of interest at 130.90. In addition, stochastic is already signaling overbought conditions and all that. Also, them moving averages are still in downtrend mode.
And if we apply our handy Fibonacci tool, we can see that the pair is currently hesitating at the 50% retracement level, which is another technical argument in favor of a downside move.
The only thing wrong with this picture is that the pair has been closing above the moving averages, which implies that bulls are trying to take over.
If that is indeed the case, then just make sure to keep an eye on 130.90 since bulls will likely be waiting there.
But if the pair continues to move lower and clears 130.90, then that likely means that them bears are having another go at 129.30.
The uptrend on USD/CHF is apparently about to end and a downtrend may soon begin since them moving averages are crossing over for a potential cross-over into downtrend mode.
And as marked in the chart above, we can also see that a fresh descending channel has formed, which is another sign that the trend may be changing.
The pair currently appears to be moving back up to test the channel’s resistance area, which should be somewhere around the area of interest at 1.0010.
And if that price area does act as resistance, then y’all may wanna start lookin’ for opportunities to go short on the pair.
However, there’s still a chance that the bulls may try and continue the uptrend. So just be ready to bail yo shorts if the pair continues moving higher past 1.0040.
In any case, just make sure y’all remember to practice proper risk management as always, a’ight?