Chart Art: Trend and Range Plays on EUR/USD and GBP/USD

Chart Art: Trend and Range Plays on EUR/USD and GBP/USD

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Ready to get your pippin’ on? Today we’re looking at not one, but TWO major dollar setups for opportunities! Which one will you most likely trade?

EUR/USD: 1-hour

EUR/USD 1-hour Forex Chart
EUR/USD 1-hour Forex Chart

Remember that retracement level that we checked out late last week? Well, it looks like the bulls and bears are having tug-o-pips around the area!

EUR/USD is locked in a symmetrical triangle around 1.1200, which means that buyers and sellers can’t quite decide where price will go after hitting resistance at 1.1500.

If traders take cues from the 100 SMA crossing below the 200 SMA, then we could see EUR/USD revisit its February lows near 1.0800 – 1.0850.

But wait! A quick look at EUR/USD’s daily trend analysis tells us that the pair is still mostly “bullish” in the higher time frames.

If you decide to trade an upside breakout, then you can place your stops below the triangle and aim for previous highs near 1.1500 for a good reward-to-risk ratio.

GBP/USD: Daily

GBP/USD Daily Forex Chart
GBP/USD Daily Forex Chart

Here’s one for the range warriors out there! GBP/USD is fast approaching the 1.2000 – 1.2100 levels, which marks a MAJOR support level for the pair.

As if the chart is not attractive enough for you, MarketMilk’s nifty oscillators are also pointing at Cable’s “oversold” conditions on the daily RSI, Stochastic, Williams %R, Bollinger Bands, AND Keltner Channels!

The pair is still a hundred pips or so from a range support retest, so y’all still have time to design trading plans around a potential support play.

Buying at the first signs of a bounce would give you major pips especially if you bet on a pop back up to the 1.3300 previous resistance area.

  February 25, 2020 - Forex Alchemy

Not convinced that the pound will see gains against the dollar anytime soon? You can also wait for a clear break below 1.2000 and trail your stops until the pair finds some support.

Good luck and good trading this one!

Forex Chart Settings:

Slow Stochastic: 14,3,3
100 SMA: Blue line
200 SMA: Red line

CLICK THE FOLLOWING LINK AND READ AGAIN.

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