Good day forex peeps! I spotted something interesting in USDJPY’s 1-hour chart… a cup and handle! Well, a cup and handle is a bullish reversal pattern. So if the pair moves past the neckline that I drew, then it’s likely for it to zoom higher. The next notable resistance for the pair would be the previous support at 88.70. The pair, however, could just range between the neckline and the support just above 87.00 if it fails to break out from the formation.
Moving onto the EURUSD… A hidden bullish divergence, where the price makes higher highs and the stochastics register lower lows, can be observed. Just recently, the pair already bounced from its 50.0% Fibonacci retracement level. With the stochastics in the oversold region, the more I believe that it would continue to move higher. It can reach yesterday’s high if it does. Though, it’s also possible, albeit unlikely, for it to fall down to its 61.8% Fib or even back to the 1.5000 level if it breaks below the 50% Fib.
Here’s the latest scoop on the AUDUSD pair: A rising trend line can be drawn connecting the higher lows of the pair on the 1-hour chart. Right now, it is sitting on top of the trend line after consolidating for almost an entire day. Could that consolidation be another bullish flag like the one formed a few days ago? If so, the pair could retest its yearly highs upon breaking above resistance at the psychological 0.9300 level. But if the rising trend line is not strong enough to support the pair, the AUDUSD might tumble all the way down to this week’s low around the 0.9100 area.