Where my euro bulls at?
I’m seeing a couple of neat pullback setups on the 4-hour charts of EUR/GBP and EUR/CHF.
Don’t miss out!
Check out this textbook break-and-retest play lining up nicely on the 4-hour chart of EUR/GBP!
The pair is pulling back to the area of interest spanned by the Fibonacci retracement levels between the .8400 and .8500 zone. Where are buyers likely to jump in?
The 50% and 61.8% levels are looking like prime entry points, with the former lining up with the 100 SMA dynamic support and the latter coinciding with the .8400 handle.
The 100 SMA is above the 200 SMA to confirm that support levels are more likely to hold than to break. At the same time, Stochastic is dipping into the oversold region to reflect exhaustion among sellers. Turning back up would mean that euro bulls are ready to charge again.
If any of the Fibs hold as support, EUR/GBP could make its way back up to the swing high at .8620 and beyond.
Looking for a strong uptrend to catch?
This one on EUR/CHF might be a better bet for trend warriors out there!
Price has formed higher lows connected by a rising trend line that’s been holding since mid-March, and it looks like another test of support is in order.
Using the handy-dandy Fib tool shows that EUR/CHF is already finding some buyers at the 38.2% level. Stochastic has already reached the oversold region and is starting to turn higher, indicating that euro bulls are ready to charge.
A larger pullback could take it down to the 61.8% level that’s right smack in line with the trend line and 1.0300 major psychological support.
Oh, and did I mention that this coincides with the 100 SMA dynamic inflection point, too?