If you’re a trend rider, then you may like what I’ve got ‘coz I’m serving up a channel + euro double special in today’s intraday charts update, with EUR/USD and EUR/JPY on the menu.
EUR/USD has lately been trending ever lower while respecting that there descending channel. And as y’all can see, the pair is currently testing the channel’s resistance area at 1.1650.
And if we take a look at our technical indicators, we can see that them moving averages are indicating a healthy downtrend. Also, the 100 SMA appears to be acting as dynamic resistance. Moreover, stochastic is already signaling overbought conditions and all that.
Overall, our technical indicators seem to favor further downside moves. Y’all may therefore wanna start lookin’ for opportunities to go short.
As always, just be reminded that there’s a chance that the pair may stage an upside channel breakout. Such a scenario seems rather unlikely, though. But if such a scenario plays out, then y’all may wanna think about bailing yo shorts if the pair keeps moving higher and clears the 1.1750 minor psychological level.
EUR/JPY has also been trending lower lately while also trapped inside a descending channel.
And looking at that there chart, we can see that the pair has yet to test the channel’s resistance at 127.10. However, the pair is already hesitating at the area of interest at 126.60.
If we apply our Fibonacci tool, we can see that 126.60 sits right smack on the 50% retracement level, which is likely why the pair is already getting weighed down by selling pressure. That also means that there’s a chance that the pair may move lower without testing the channel’s resistance. And all the more so, given that stochastic is already signaling overbought conditions and all that.
Still, y’all shouldn’t be too surprised if the pair does move higher and test the channel’s resistance at 127.10 before moving back down again. After all, 127.10 also lines up rather nicely with the 61.8% retracement level.
And again, the possibility of a topside channel breakout is always there. The pair would need to clear 128.50 in order to validate a topside breakout, though.
In any case, y’all just remember to practice proper risk management as always, a’ight?