Wassup, Friday foreign exchange warriors!
Let’s zoom in on the 1-hour charts at the moment as a result of GBP/USD and EUR/JPY’s short-term traits are poppin’ up continuation and breakout alternatives.
You in? Verify it!
Development merchants higher get their trading plans lined up as a result of EUR/JPY is exhibiting a pattern continuation setup at the moment.
As you’ll be able to see, the pair has been on a downtrend since seeing a moving average crossover in late October (hey, it rhymes!) and now it’s pulling again to the 129.80 zone that strains up with the 38.2% Fib and 100 SMA retracement.
Can the euro proceed to lose pips towards the yen?
Shorting at present ranges would yield a fairly good risk ratio in the event you’re betting on the euro dropping again to its 129.25 lows and even making new month-to-month lows.
In the event you imagine that EUR/JPY is due for a reversal, although, then you definitely’ll wish to watch the pair in case it breaks above the 100 AND 200 SMAs and bounce in as quickly because it busts above the 130.75 earlier space of curiosity.
Do not forget that descending channel setup that we talked about earlier this week?
Nicely, GBP/USD bulls ain’t taking part in so now they’ve compelled not solely a breakout above the candlestick pattern but in addition probably a bullish transferring common crossover within the subsequent buying and selling classes.
Are we a reversal within the making?
Constant buying and selling above the 1.3500 psychological deal with might push the pound as much as the 1.3600 space of curiosity.
Not satisfied that the pound can acquire extra pips towards the greenback?
Bears can look out for a rejection at 1.3500 after which some bearish momentum earlier than aiming for November’s lows with stops simply above the massive 1.3500 zone.
