Sup, dawg? In today’s intraday charts update, we’ll be checking up on our old setups on EUR/JPY and EUR/CHF. Of course, it goes without saying that we’ll be looking for fresh setups as well.
And back then, the pair was bouncing off the rectangle’s support at 127.80, so we were bullish on the pair, and we were expecting the pair to test the rectangle’s resistance at 129.20.
Well, that’s exactly how price action played out, which is pretty cool.
Anyhow, the rectangle is still intact and the rectangle’s resistance at 129.20 appears to be holding. So if you’re looking to trade within the range again, then you better start lookin’ for opportunities to go short since the pair may be moving down towards 127.80.
But like last time, do keep in mind that the risk for a breakout is always there. And if bearish momentum is so strong that the pair smashed lower past 127.80, then that likely means that bears are gunning for 126.70 next.
On the flip side, if the pair moves back up and clears 129.20, then that implies that bulls are shooting for 130.10.
And if y’all can also still recall, the pair was testing the channel’s resistance, which was at 1.1350 back then. We were therefore lookin’ for opportunities to go short on the pair.
Well, 1.1350 did hold as resistance and the pair moved lower for over 120 pips. And if you were able to catch that downswing, then give yo self a pat on the back.
Anyhow, the pair found buyers just below the mid-channel area and is now back at the channel’s resistance at 1.1300.
But before y’all start lookin’ for opportunities to go short on the pair, do take note that stochastic is already signaling oversold conditions. And that, coupled with the fact that the pair failed to test the channel’s support, implies that bulls are starting to win out and/or bears are losing steam.
There’s therefore a higher-than-average chance for a topside channel breakout, so be careful. The pair would need to clear 1.1350 in order to validate a topside breakout, though.
In any case, y’all just make sure to practice proper risk management as always, a’ight? Peace, out!