Poor Huck and Pipcrawler – looks like they got burned by yesterday’s strong move! Resistance between 1.5000 and 1.5050 didn’t hold on the EURUSD, and pair broke up to set a new yearly high, reaching as high as 1.5146. Right now the pair is showing some signs that bulls may be tired, so we could see a short retracement. Price could fall down and possibly find support at the previous area of interest around 1.5050. On the other hand, if buyers aren’t dancing, they may push price higher and possibly test psychologically round numbers at 1.5200 and 1.5300.
Will you take a look at that – the USDCHF finally reached the 1.0000 mark! The pair broke down from the ascending trend line and continued to shoot down to 0.9956. With stochastic showing oversold conditions, will sellers take a break and let buyers have their way? If buyers push price back up, we could see some resistance at 1.0040, a former support level. On the other hand, if selling pressures remain strong, we could see price fall down to test the 0.9900 handle.
It looks like the GBP/USD pair was able to retraced some of its losses after breaking down from the rising wedge chart parttern. The pair is currently sittin’ pretty and consolidating right smack at the .618 Fibonacci retracement level. Stochastics also indicates that the pair could be overbought. Hmm, are bears starting to jump back in? If the bears manage to take control of price action, the pair’s next probably stops are at 1.6500 and 1.6300 respectively. In addition to being a psychologically significant, these price levels have served as major support levels many times before.