I’ve got a couple of pullback setups and one potential range play on today’s set! Check out these 4-hour charts of EUR/JPY, GBP/JPY, and EUR/GBP.
EUR/JPY seems to be in the mood for yet another correction – a shallow one this time! Price recently breached support around the 132.00 major psychological handle and dipped to a low of 129.56 before pulling up.
The pair appears to be having trouble climbing past the broken support area, which suggests that euro bears are eager to push it back down to the swing low or lower. A higher correction could still testing the 38.2% Fib at 132.60 or the next retracement levels before heading back south.
Last week’s post-ECB rally didn’t go very far as head honcho Draghi’s presser kept hawkish expectations in check. There’s not much in the way of top-tier events in the region this week, although Draghi has another speech coming up.
Guppy broke through another support zone recently but bounced right off the 145.00 mark. Price looks ready to pull back to the 38.2% Fibonacci retracement level, which lines up with a former rising trend line.
Stochastic is already indicating overbought conditions, which means that sellers could regain control of price action soon and push price back to the swing low.
Upbeat U.K. services PMI and fading Brexit jitters were seen as the likely catalysts for the pound’s midweek bounce, but the lack of major reports this week could make it challenging for the currency to stay afloat.
This pair may have busted through that daily descending channel resistance but it could be closing in on another potential ceiling at the .9000 mark. Price is still retesting the broken short-term resistance around the .8900 handle, though, and a bounce could take it to the next upside barrier.
Stochastic is already indicating oversold conditions, which means that sellers are tired and willing to let buyers take over. But if bearish pressure remains, EUR/GBP could still tumble below the mid-range area of interest to test the bottom at the .8750 minor psychological mark.
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