Feel like trading the euro today?
If you do, then you’re in luck! EUR/CHF and EUR/GBP are hanging out near key resistance zones on the 1-hour and 4-hour charts.
Check them out and see if you can sneak in pips from their setups!
EUR/CHF: 1-hour
Reversal alert! EUR/CHF is pushing against a trend line resistance that’s been around since late September when the 100 SMA crossed below the 200 SMA.
A clear break above the trend line we’ve marked may invite euro bulls out of the woodwork and lead to a short-term uptrend.Look out for consistent trading above the trend line and maybe even a moving average crossover!
A bullish momentum could push EUR/CHF to inflection points like 1.0500 or 1.0550.
If the trend line resistance holds for another day, however, then EUR/CHF will likely extend its months-long downtrend and hit the 1.0375 lows or even new December lows.
EUR/GBP: 4-hour
I’m looking at heads and shoulders today and, no, it’s not because mine are creaking after a night at a bar.
I’m talking EUR/GBP’s Head and Shoulders pattern, yo! The pair is having trouble making new highs above .8550, which is understandable as the area had held as resistance in November and an inflection point in September.Will the pattern lead to a downswing for the euro? The second “shoulder” hasn’t fully formed yet, which means that we’ve all got time to whip up trading plans around the potential setup.
If the .8525 zone held as resistance and drags the euro down to the .8500 neckline, then I’ll look out for a possible move down to the .8450 or .8520 previous areas of interest.
If the current upswing invalidates the reversal pattern, though, or if EUR/GBP makes new December highs in the next trading sessions, then I’ll set my sights on the .8600 or .8650 previous resistance levels.