Yo! Welcome to the last trading day of the week!
Today we’re checkin’ out not one, but TWO charts that would set you up if the dollar reigned supreme in the next coupla hours.
EUR/USD is consolidating around the 1.2065 zone, which has served as a support and resistance level on the 1-hour time frame.
This time around, the area also lines up with the 200 SMA after the 100 SMA has already crossed below the 200 SMA.
Will the euro see more losses against the dollar? Shorting at current levels or the first signs of bearish momentum is a good play if you’re betting on the euro dipping back to its May lows.
Not convinced that the euro can continue to weaken against the Greenback? Wait for a bit of momentum above the 200 SMA, which could push EUR/USD back to April’s highs.
Remember that range support play that we spotted a coupla days back? Well, it looks like the bulls got to work!
AUD/USD is a few pips away from the .7800 major psychological handle that has been limiting the bulls’ game since March. And look at that, Stochastic is chillin’ in the overbought region!
Aussie bears can start placing them short trades or wait for an actual retest of the .7800 zone if they believe that AUD/USD will head back to its mid-range or 4-hour range support.
Feel like the Aussie will soon bust above its range? You’ll want to wait for a clear break above .7800 if you want to target areas of interest like .7925 or .8000