Welcome to mid-week trading, yo!
Whether you’re a day trader or you’re more into longer-term trades, you’ll definitely want to see what I got on EUR/JPY and EUR/AUD.
EUR/JPY: 1-hour
EUR/JPY is consolidating in what looks like a descending triangle after rising by a cool 400 pips from late June to this week.
Are we looking at a reversal in the making? Or are euro bulls just taking a breather?
A break below the 123.00 triangle support could drag the euro all the way to the 122.00 previous resistance zone.
An upside break, on the other hand, could push EUR/JPY all the way to 124.25 or 125.25 areas of interest.
What do you think? Which way will EUR/JPY go?
EUR/AUD: Daily
I spy with my eye a double bottom play in the making!
As you can see, EUR/AUD has found support at the 1.6100 psychological handle twice in the last couple of weeks.
Shorting at current levels would yield the best reward-to-risk ratio if you believe that the euro would go back to the 1.6100 support.
If you’re on the bull camp, however, and you think that EUR/AUD will soon revisit its 2019 levels, then you can also wait for a break above the 1.6400 mark and then scale up your positions until the bullish swing runs out of steam.
Thursday, January 4, 2018