Heads up, euro traders!
The common currency just hit resistance levels against not one, but TWO major counterparts.
Check out what’s cookin’ on EUR/USD and EUR/JPY’s charts!
EUR/USD: 4-hour
In case you missed it, EUR/USD hit the big 1.1900 handle last week.
The bears have stepped in since then, however, and now the pair is hanging out around the 1.1875 support and resistance level that’s also just above the 200 SMA on the 4-hour time frame.
Are we looking at a break-and-retest setup over here?
Watch out for EUR/USD trading above the broken range resistance again, which could lead to the euro retesting last week’s highs and maybe even rising to the 2.0000 psychological level.
If EUR/USD dips back below the 200 SMA, though, then the common currency could go back inside its range and dip back towards the 1.1815 mid-range or the 1.1760 range support zones.
EUR/JPY: 4-hour
If you’re feeling like trading trends instead of ranges, then this setup is for you!
EUR/JPY is consolidating around the 130.25 area that happens to lines up with the 61.8% Fib retracement of mid-July’s downswing as well as a channel resistance that’s been around since late May.
Euro bears can short at current levels, place stops just above the 200 SMA, and aim for July’s lows for a decent risk ratio.
Meanwhile, the bulls would have to wait for a break above the trend line and 200 SMA resistance areas before aiming for previous areas of interest like 132.00 or 133.50.
