Breakout! The AUDUSD looks like it’s finally turning up! As you can see from the chart above, the pair already broke out from an inverse head and shoulders formation. Presently, however, it is seeing some resistance around 0.9000. With the stochastics in the overbought region, the pair could retrace for awhile and even test the previous neckline before heading north. If for some reason the pair falls back again below 0.8900 then its next level of support would be at 0.8800.
Check out the GBPUSD 1-hour chart and… Whoa! The pair finally managed to break the resistance around 1.5730 as it surged to a high of 1.5795. This suggests that the pair could climb higher, especially once it pierces through the psychological 1.5800 handle. However, the stochastics in the overbought area indicate that buyers are already exhausted and that the pair could pull back a bit. It could retrace until the 38.2% Fibonacci level, which is nearly in line with the broken resistance level. If it pulls back a bit lower, it could bounce up after hitting the 61.8% Fibonacci retracement level, at which the pair could retest the rising trend line connecting the lows of the price.
Things are looking up for the NZDUSD as well. Notice that it also broke out from a cup and handle pattern, which we all know is a bullish reversal formation. The pair, however, could take a breather for a while and trade sideways given an overbought condition. Its next notable resistance would around 0.7150. The pattern’s neckline and the 0.7000 psychological level should keep the pair afloat. If these supports give way, then it’s possible for it to fall all the way back to 0.6900.