If you’re wondering what’s going on with the USDCHF pair, here’s the lowdown. The pair just broke below support around the 1.0250 area and dropped to a low of 1.0130. A bit of consolidation followed but, with the stochastics climbing higher, upward price action could come next. The pair could retrace up to the 50% Fibonacci retracement level, which coincides with the broken support level. Could it serve as a resistance level this time? If the pair’s upward momentum is strong enough to break above the 1.0250 mark, the pair could surge all the way up before encountering another resistance level at 1.0380. On the other hand, if the pair breaks below minor support at the previous low of 1.0130, it could continue dropping all the way down to the psychological 1.0100 handle.
Moving on to the USDCAD 1-hour chart… The pair is sitting right at the descending trend line drawn connecting its highs. Currently, the stochastics are in the overbought area, implying that the pair could drop down soon. If it does, it could find support at the previous low of 1.0250. But if the pair continues to rally and eventually breaks above the descending trend line, it could zoom all the way up and reverse after hitting the minor resistance level around 1.0400. If the pair goes on to breach 1.0400, the next resistance level in sight is at the broken support around 1.0450.
Next is the AUDJPY on its 1-hour chart. Well, the pair has been on an uptrend since December 18. Conditions are far from being overbought as indicated by the stochastics. This suggests that the pair still has a lot of room to move up. It can easily move past yesterday’s high at 86.21 and even reach the psychological 87.00 if the current trend holds. But if for some reason the uptrend line breaks, the pair can find itself down at least at 85.00.