Lets kick things off with a look at the daily chart on the AUDUSD! Once again, price action is testing the long term descending trendline. There appears to be much indecisiveness amongst buyers and sellers, as suggested by the recent dojis and spinning tops. Could we be in line for a breakout? If buying pressure breaks through the trendline, we could see price rise to tests formers highs around 0.9400. On the other hand, resistance could hold and with stochastics indicating overbought conditions, sellers might just jump back in and look to bring price back down to lows near 0.8800 and 0.8600.
It looks like the NZDUSD isn’t performing as well as its fellow comdolls. From the looks of it, the NZDUSD just broke out of a rising wedge pattern and is falling towards 0.7000. If we do see price touch the 0.7000 handle, a soft bounce is likely, given how this price level has provided major support in the past. Also watch out for the newly forming falling trend line as we could see price find some resistance whenever it tries to rally upwards.
Parity at last?!? Looking back, we can see how the USDCAD bounced from the intersection of the falling trend line and the 38.2% Fibonacci retracement level in an almost perfect technical fashion. The 1.0000 price level is a very important psychological level and we could see a mad number of buyers at this level, especially with stochastics indicating oversold conditions. If price fails to close below this price level, we could see price retrace and test the falling trend line that I drew on the daily.