Feeling euro bullish these days?
Check out these chart pattern breakouts and potential long-term rallies on EUR/JPY and EUR/CAD!
EUR/JPY: Daily
Remember that EUR/JPY descending triangle pattern support we were watching last week?
Well, the pair bounced off the floor and is now testing the top!
In fact, we might be seeing a bullish breakout attempt right here, possibly leading to a rally that’s the same height as the chart formation or roughly 625 pips.
Stochastic is supporting more upside moves, as the oscillator has some room to climb before reaching the overbought zone.
However, the 100 SMA is still below the 200 SMA to indicate that there’s a chance resistance might hold. If that’s the case, EUR/JPY might still retreat back to the triangle bottom or nearby support zones.
Better keep your eyes peeled for any reversal candlesticks around the 131.50 area if you’re planning on shorting.
EUR/CAD: 4-hour
Reversal alert!
EUR/CAD made a couple of failed attempts to break below the 1.4100 handle, creating a double bottom pattern visible on its 4-hour chart.
Will a big rally happen soon?
Price is inching closer to testing the neckline around the 1.4600 major psychological mark, and a break higher could set off an uptrend that might last roughly 500 pips.
Technical indicators aren’t so sure about that, though.
The 100 SMA is below the 200 SMA while Stochastic is hovering around overbought levels. Turning lower might mean that sellers are returning and could take this pair back down to the lows.
I’d wait and see how price reacts to the neckline resistance before setting any orders!
