Yo! If you’re lookin’ for trend plays on the euro, then you may wanna check out today’s intraday charts update ‘coz I’m serving up a couple of channel patterns on EUR/JPY and EUR/CHF.
EUR/JPY has been encountering selling pressure for some time now. And in the process, a fresh descending channel has formed for us to play with.
As y’all can see, the pair is currently bouncing off the channel’s support. And if the pair continues moving higher, it will likely test the channel’s resistance, which should be somewhere around the 132.00 major psychological level.
Y’all may therefore wanna put this pair on yo watch list. And all the more so, given that them moving averages just recently crossed-over into downtrend mode.
As always, just keep in mind that there’s a slim chance that the pair may continue moving higher and stage an upside breakout. The pair needs to clear 132.50 first before y’all may wanna think about bailing yo shorts (if any), however.
If you’re more bullish on the euro, then heads up ‘coz a fresh ascending channel has formed on EUR/CHF’s 1-hour chart. Not only that, the pair appears to be bouncing off the channel’s support area at 1.1320.
Looking at our technical indicators, we can see that them moving averages are in uptrend mode. Stochastic, meanwhile, is moving back up again after visiting oversold territory.
And since our technical indicators support further moves to the upside, y’all may therefore wanna start lookin’ for opportunities to go long on the pair.
However, just note that there’s an area of interest nearby at 1.1380, so make sure to observe how the pair reacts to that if (or when) it gets there.
As usual, there’s always a risk that the setup may get invalidated, so just be ready to bail yo longs or even switch to a more bearish bias if the moves lower past 1.1260 after a downside channel breakout.
At any rate, y’all just remember to practice proper risk management as always, a’ight?