Not feelin’ like trading the dollar today? Let’s check out some euro trades!
EUR/JPY is consolidating after an extended downtrend while EUR/AUD just hit a major inflection point.
Think these euro pairs are about to see interesting moves in the next trading sessions? Check them out!
EUR/JPY: 1-hour
EUR/JPY has been trading in a downtrend since sporting a moving average crossover in late October.
The bears have lost momentum, though, and now EUR/JPY is consolidating inside a descending triangle pattern on the 1-hour time frame.
A break below the 128.75 triangle support would mean that the bears just took a breather.The 127.00 mark is the closest support zone but you never know with downside breakout momentum, ya know?
If the bulls gain enough friends to force an upside breakout above the triangle, then you know that it’s already trading above the 100 and 200 SMAs and that a jump back to the 129.50 or even the big 130.00 previous resistance zones may follow.
EUR/AUD: 4-hour
EUR/AUD had a FANTASTIC November, rising more than 600 pips after falling by almost 900 pips between late September and late October.
But have the bulls run out of steam? EUR/AUD’s higher highs are not supported by the oscillator showing lower highs on the 4-hour time frame. That’s right, we’ve got a divergence on the chart!If the bearish divergence is not enough to gain your attention, then you should know that it showed up just as EUR/AUD hit the 1.5950 zone that had supported EUR/AUD from July to September.
Euro bears who think that EUR/AUD’s bullish run is over can start scaling in at current levels or at the first signs of bearish candlesticks.
Meanwhile, bulls who are confident that EUR/AUD can reach previous resistance levels like 1.6000 or 1.6200 can buy as soon as the euro makes new weekly highs.
What do you think? Is this setup something you would like to trade?