AUDUSD – 4 hour
After forming a head and shoulders formation the past couple of weeks, the pair broke past the rising neckline, falling as low as 0.9139 in yesterday’s trading. Right now, the pair has bounced up and is trading just below last week’s low around the 0.9200 area. Will this area prove to be a support turned resistance point? If it does hold, look for the bears to bring the pair to test a former low at 0.9020. On the other hand, if the bulls see this as a buying opportunity, they may bring price up to test the former neckline around 0.9250.
Almost the same breakout happened with the NZDUSD pair when sellers managed to bust through the neckline of the double top chart formation. The pair fell right through support at 0.7300 before finding a bottom at 0.7274. It seems that the pair is starting to retrace some of its losses, as stochastic just crossed over, headed out of oversold territory and pointing upwards. If this upward movement proves to just be a retracement, expect a lot of selling pressures around 0.7400, the broken neckline and .618 Fibonacci level. On the other hand, if the finds some momentum again, its next target would probably be the 0.7100 region, this month’s lowest levels.
USDCAD – 4 hour
Wow! Another breakout! That’s right folks! Buyers pushed price action to break the falling trend line on the USDCAD. The pair rallied furiously and nearly hit the 1.0700 handle before retracing to current levels. If the pair continues to retrace, there could be support at 1.0600, a former area of interest, which also lines up with the .382 Fibonacci retracement level. If however, buying pressure remains strong, we could see the pair shoot up to test a recent high at 1.0775.