As you can see from the 4-hour chart, any gains of the EURUSD has been held off by a very strong falling trend line. With price climbing and stochastics coming out of oversold territory, it seems that the bulls are going for a fifth test. If they do push price higher, watch out for major resistance at 1.3600. This price level coincides with both the falling trend line and the previous day’s low. However, if we see a 4-hour candle close above the 1.3600 handle, a move towards 1.3700 is likely.
Here’s an update on the USDCAD chart from yesterday. Looks like the pair broke out of the bullish flag, and flew all the way up to test 1.0680 before falling back down. The pair is now retesting the resistance turned support at 1.0590. If support holds, we could see the pair rise once again and test former highs at 1.0770. However, if sellers come back in force, they could push price further down, possibly all the way to the 1.0500 handle.
Lastly, let’s end with some Swiss cheese! The USDCHF appears to be trading within an ascending channel, bouncing up and down within the range. With stochastics showing downward momentum, we could see the pair continue to fall and test the rising support line at around 1.0780. If support holds, the pair could continue its upward trek to set new highs near the top of the channel at 1.1000. On the other hand, we could see a break of support and a drop all the way to 1.0650 could be in the cards.