We’re all about the dollar today, forex brothas!
EUR/USD is hitting a channel resistance while USD/JPY is turning lower just as it reached a range ceiling.
What do you think of these setups?
EUR/USD: 1-hour
Did you know that EUR/USD has been on a downtrend since the start of the month?
Bears have another chance today because the euro has is hanging around the 1.1725 levels near a channel resistance retest AND the 100 SMA on the 1-hour chart.
You can sell at the earliest signs of selling momentum but you gotta be flexible in your biases because EUR/USD can easily extend the lowkey range-y price action that’s been going on since last week.
Think we’ll see EUR/USD reverse to the upside instead?
Watch out for a firm close and then some chillin’ above the 200 SMA, which could bump up the euro to the 1.1760 or 1.1800 previous resistance levels.
USD/JPY: 4-hour
Who’s up for some range trading?
Dollar bears look determined to defend the 110.50 psychological level because USD/JPY just turned lower for the nth time since mid-July.
Is it time to sell USD/JPY?
Stochastic is on the bears’ side with its overbought signal so you’ll want to at least think about shorting the dollar until it hits potential buy zones near 110.00 – 110.25.
But what if USD/JPY finally breaks above its months-long range?
Look out for a clear break above September’s highs because it could lead to a trip back to the 111.00 or 111.60 previous highs!
