Oh baby, it looks like a sexy bearish divergence has formed on the daily chart of EURJPY! Price is making “lower highs” but stochastics is making “higher lows”, which means we could EURJPY swing lower. In this case, we could see price move all the way to the bottom of the channel again. Be careful though… If the bulls manage to push price above yesterday’s high, we could see the pair soar to 115.00
After bursting higher midway through last week, AUDUSD has now consolidated and seems to have formed a bullish pennant. Are buyers gearing up for another strong move? Look for a break above this week’s high as a sign that this pair will zoom higher. Buyers may have their eyes set for the former high around .8860. On the other hand, if we see a break below this week’s lows, we may just see the pair drop and give back its recent gains.
Lastly, let’s hop on over to NZDUSD. After busting out of a double bottom, price jumped up and found resistance around the .7150 and retraced a bit. Now that price is once again testing the resistance, will it hold? Or will we see a break? If we see a candle close above .7150, it may be a sign of a stronger move up to test former highs at .7320. Then again, if resistance is strong, we could see the pair drop and find support at the former neckline at .6870.!