Chart Art: Retracement Plays for Two European Crosses

National Financial Solution > Forex Trading > Chart Art: Retracement Plays for Two European Crosses

Got a Euro 2020 hangover?

Double your celebration or take advantage of your frustrations by profiting from GBP/JPY and EUR/AUD‘s setups!

Check out these charts and see if you can bring home (heh) some pips:

EUR/AUD: 1-hour

EUR/AUD 1-hour Forex Chart
EUR/AUD 1-hour Forex Chart

EUR/AUD just completed a Double Top pattern and is now consolidating just above the 1.5850 psychological area.

As you can see, the level lines up with a broken range support AND the 50% Fib retracement of the last major upswing.

Will EUR/AUD retest its 1.5975 highs? Watch out for a break above the current consolidation and see if the bulls have enough juice to revisit July’s highs.

If EUR/AUD drops below the 50% Fib, though, then we could see the euro drop back to its broken range.

The 1.5800 handle near the SMAs would make for a good initial target but you can also aim for the 1.5780 mid-range or 1.5700 range support levels if we see enough bearish momentum.

GBP/JPY: 4-hour

GBP/JPY 4-hour Forex Chart
GBP/JPY 4-hour Forex Chart

Guppy looks like it’s ready for a reversal after breaking below an ascending channel support.

Specifically, we’re looking at a continuation of a descending channel as GBP/JPY finds bearish pressure at the 100 SMA near the channel resistance.

And if that’s not enough to get you planning trade decisions, then you should also note that there’s a bearish divergence on the 4-hour time frame.

Shorting at current levels would give you the best risk ratio if you’re betting on more weakness for the pound. July’s lows is a good target if you’re not too sure about the extent of the downtrend.

Meanwhile, bulls would have to wait for a clear break above the SMAs and a return to the ascending channel for upside opportunities.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *