Can you believe it’s already the middle of the week?
Get over any mid-week hump by taking advantage of EUR/USD and CHF/JPY reaching trend make or break zones!
The pairs’ 4-hour charts should tell us more:
EUR/USD: 4-hour
First up is a textbook trend pullback play for EUR/USD.
The pair is finding support from the 1.0700 zone, which isn’t surprising since the psychological level conveniently lines up with the 61.8% Fibonacci retracement of 2023’s upswing, a key resistance back in December, and an ascending channel support on the 4-hour time frame.
How low can EUR/USD go before it sees sustained buying pressure?
EUR bulls can buy at the earliest signs of momentum above the 1.0700 zone. The 1.1000 previous high is a good level to target but you can also aim higher if there’s enough catalyst to extend EUR’s strength against USD.
Before you buy EUR/USD like it’s the last Beyoncé concert tickets, though, you should note that price is still trading below the 200 SMA while the 100 SMA is turning low enough to tighten its gap against the longer-term moving average.
Don’t discount a possible end of a trend especially if EUR/USD dips and stays below the channel support that we’re watching!
CHF/JPY: 4-hour
Where my breakout-trading friends at?
February has been a good month for CHF/JPY as it broke above a descending channel pattern that’s been around since mid-November.
Are we looking at a legit breakout? Or will CHF/JPY soon resume its downtrend?
The 100 and 200 SMAs favor the bulls as they edge closer to a possible bullish crossover.
Meanwhile, the 142.00 previous resistance level could turn into a support if CHF/JPY bears fail to drag the pair back below the area of interest.
Watch the next candlesticks closely to see if CHF/JPY manages to stay above the channel and maybe show more signs of a sustained bullish reversal!
