In a perfect technical fashion, the EURUSD bounced off from the falling trend line resistance yesterday. The important price level to watch now is support at the 1.3450 region, last week’s low. If we see a 4-hour candle close below last week’s low, price could fall 1.3300 before finding any sort of buying support. Still, a retest of the falling trend line resistance isn’t entirely possible, especially since stochastics is about to hit oversold territory.
Next on my list is the EURJPY. We can see that the pair finally broke out of its rising wedge pattern yesterday. Could this be a signal of a further move downwards? Before that, however, the pair looks like its about to stage a mid-week correction as price just bounced off support at 121.50. If the pair climbs higher, 123.00 could provide strong resistance for the pair as it lines up nicely with a broken support level and the 38.2% Fibonacci retracement level.
Lastly, let’s take a look at the USDCAD. It looks like support above the 1.0400 price handle has held, and price action has shot up. The pair is now chilling around the 1.0560 price area, which has been an area of interest in the past. It also appears that the 50.0% Fibonacci is holding up. With stochastics showing overbought conditions, has buying momentum stopped? If the Fibonacci level holds, we could see price reverse and test support at 1.0400 once again. On the other hand, if price breaks through the resistance, the pair may shoot up to test the recent swing high around 1.0770.