Can't decide on your euro bias just yet?
Check out this potential bullish play on EUR/CHF and a bearish reversal pattern forming on EUR/CAD.
EUR/CHF: 4-hour
This neat break-and-retest setup on EUR/CHF looks too good to pass up!
The pair busted through the ceiling at the .9900 handle early this year and zoomed up to a high of 1.0097 before retreating.
Will these nearby support levels attract more buyers?
The Fib retracement tool reveals that price is already close to testing the 61.8% level, which might be enough to keep losses in check.
A larger correction could reach the former resistance zone, which is right around the dynamic support at the moving averages and a rising trend line that's been holding since mid-December.
Stochastic is already dipping into the oversold region to reflect exhaustion among sellers, so turning higher would confirm a return in bullish vibes.
Also, the 100 SMA is still above the 200 SMA to hint that support levels are more likely to hold than to break. Watch out for a move back to the swing high and beyond in that case!
EUR/CAD: 4-hour
Is EUR/CAD already done with its rallies?
The pair made a couple of failed attempts to break above the resistance near the 1.4600 handle, creating a double top on its 4-hour time frame.
Price has yet to test the neckline around 1.4250-1.4300, but a break below this support zone could confirm that a reversal is in order.
Moving averages seem to be hinting at a potential takeover by bears, as a downward crossover is brewing. A move below these dynamic inflection points could be an early signal that selling momentum is picking up.
In addition, Stochastic is heading south, so EUR/CAD could keep following suit while bearish pressure is in play. The oscillator has a bit of ground to cover before reflecting oversold conditions or exhaustion among sellers.
Better keep an eye out for a neckline breakdown since this could be followed by a drop that's the same height as the chart pattern.
That'd be close to 300 pips yo!
