It’s time for selling EURUSD and buying USDJPY could be a good hedging strategy. Let’s have a look at EURUSD. Traders should keep an eye on the FED policy which is held on 15th June 2022.
EURUSD is in a falling wedge pattern on the weekly chart. EURUSD is now trading around 1.05 and the still trend looks weak on the chart.
Traders should keep an eye on Wednesday’s FED policy and Economic projection. Disappointed US data created fear of a hike in Interest rates. Higher interest rates push the Dollar in the north direction which in turn may create havoc for EUR.
Close below 1.03 will take EUR to 0.98—0.95 and then to 0.88 levels in days to come. Don’t expect that the falling wedge may bounce from the lower levels or will provide a healthy breakout.
Above is the monthly chart, therefore it is least likely to have major pullbacks. Chances are unlikely to break the resistance level of 1.20 in the short to medium term. Looking at the fundamental and technical front, any sharp rise could be the best selling opportunity for traders and investors.
USDJPY
USDJPY has given a multi-year breakout on the monthly chart.
So on seeing both charts, selling EURUSD and buying USDJPY will be the best trading strategy for forex traders.