Trading the euro today?

Check out these neat correction setups I’m seeing on the short-term charts of EUR/GBP and EUR/NZD!                     

EUR/GBP: 1-hour

EUR/GBP 1-hour Forex Chart

EUR/GBP 1-hour Forex Chart

Here’s a falling wedge pattern forming on the hourly chart of EUR/GBP!

The pair is bouncing off the bottom and seems to be setting its sights back on the top. Will it hold as resistance again?

Technical indicators are suggesting a return in bearish vibes, so better be ready for a potential short play around the .8650 minor psychological mark.

The 100 SMA is below the 200 SMA to signal that the path of least resistance is to the downside. The slower-moving 200 SMA even coincides with the top of the wedge to add to its strength as a ceiling.

Also, Stochastic appears to be topping out without reaching the overbought area, hinting that euro bears are eager to take over.

If that’s the case, EUR/GBP could slump back to the bottom around .8575 or lower. Sustained bearish pressure might even spur a breakdown and a selloff that’s the same height as the chart pattern!

EUR/NZD: 1-hour

EUR/NZD 1-hour Forex Chart

EUR/NZD 1-hour Forex Chart

Whether you’re looking for a quick countertrend play or an opportunity to catch the ongoing downtrend, this channel on EUR/NZD is worth lookin’ at.

Price is finding support around the bottom at 1.6800 and might be in for a retracement to the Fib levels seen on the 1-hour chart.

The 38.2% Fib is in line with the mid-channel area of interest near the 1.7000 handle while the 50% level coincides with a former support zone at 1.7050.

A larger correction could reach the channel top that’s right smack in line with the 61.8% Fib at 1.7125. If any of these hold as a ceiling, EUR/NZD could resume the slide back to the channel support.

Stochastic is suggesting that the correction could go on for a while, as the oscillator has some room to climb before reflecting exhaustion among buyers.

Still, the 100 SMA is safely below the 200 SMA to indicate that the downtrend is more likely to resume than to reverse. Plus, the 200 SMA lines up with the channel top and highest Fib, too!