Who’s ready to trade pullback opportunities?
We’re all about the euro today as we focus on EUR/GBP’s Fib retracement and EUR/CAD’s channel resistance.
What do you think of these setups?
EUR/GBP: 4-hour
Here’s a textbook trend for ya!
The euro has been losing pips against the pound since September but it looks like the bulls snuck in a pip or two (or 150) in the last few weeks.
Think EUR/GBP will return to its downtrend? The bearish divergence on the 4-hour chart tells us that it’s possible.Look out for momentum below the .8500 psychological handle, which could lead to a trip down to the .8450 mid-channel support or the .8375 November lows.
On the other hand, a clear break above the channel that we’re watching could lead to a reversal that would push EUR/GBP to the .8600 previous highs or the .8650 inflection point.
Better draft them trading plans if you want in on this trend (or breakout) action!
EUR/CAD: Daily
Just last week we identified a Double Bottom pattern on EUR/CAD’s chart.
I hope y’all took the trade because the pair is now about 200 pips higher than last week’s levels!
EUR/CAD is now flirting with the 38.2% Fib retracement, which is a hair’s breadth away from the 1.4700 area of interest that’s also near the 50% Fib and the SMAs on the daily time frame.If you see EUR/CAD poppin’ out bearish candlesticks, then you should be ready for a possible dip back down to November’s lows.
If EUR/CAD makes new highs, though, then you might want to plan for a potential move to the 1.4700 zone that we’re eyeing. Heck, the euro could even hit higher areas of interest near 1.4900 or 1.5000 if there’s enough momentum!