Yo! If you’re looking for trend setups on the euro, then today’s intraday charts update is just for you ‘coz I’ve got a couple of channels on EUR/NZD and EUR/USD. Check ’em out!
A fresh descending channel pattern has apparently formed on EUR/NZD’s 1-hour chart.
And as y’all can see, the pair is currently making its way up towards the channel’s resistance area, which should be at or just below the area of interest at 1.7290.
Y’all may therefore wanna get ready to start lookin’ for opportunities to go short on the pair. And all the more so, given that stochastic is already signaling overbought conditions and all that.
However, do note that there’s also a small chance that the pair may move back down without testing the channel’s resistance. After all, the pair seems to be hesitating at the 1.7250 minor psychological level. And as mentioned earlier, stochastic is already signaling overbought conditions and all that.
And as always, there’s also a risk that the pair may continue moving higher and then stage a topside channel breakout. If that happens and the pair clears 1.7370, then y’all may wanna start thinking about bailing yo shorts or even switching to a more bullish bias.
A descending channel has also formed on EUR/USD’s 1-hour chart. But as y’all can see on that there chart, the pair has just recently reached the channel’s support and has yet to move back up.
If the pair does move back up, then bulls will likely be gunning for the channel’s resistance, which should be somewhere below the area of interest at 1.1720.
Just make sure to observe how the pair reacts to 1.1660, though. After all, that price level has seen some market interest lately. And if we apply our handy Fibonacci tool, we can also see that 1.1660 sits right smack on the 50% retracement level.
And as always, be reminded that there is always a risk for a topside channel breakout, so watch out if the pair moves higher past 1.1790 on strong bullish momentum.
Anyhow, y’all just remember to practice proper risk management as always, a’ight? Peace out!