Check out that regular bearish divergence on the USDCAD 1-hour chart! The pair has been making higher highs yet the stochastics are showing lower highs, suggesting that downward price action could take place soon. Also, the pair might have a tough time breaking past the 50% Fibonacci retracement level since this coincides with previous minor resistance around 1.0580. If it heads lower, it could drop all the way down to this week’s low of 1.0407. But if buyers insist on taking the pair higher, the USDCAD could surge past the psychological resistance at 1.0600 and race all the way to the previous week’s high of 1.0750.
If you’re wondering how the Kiwi’s doing, here’s the latest scoop: The NZDUSD pair has been stuck in a range lately, trading between resistance at 0.7290 and resistance turned support at 0.7215. Stochastics are currently in the oversold area, implying that sellers are getting exhausted. In fact, the pair just bounced from support at 0.7215 and could retest the resistance close to the psychological 0.7300 handle. But if the pair breaches support, it could tumble all the way down to the 0.7130 area, which is around this week’s open price.
And now, let’s finish up with a look at the AUDUSD! Over the past week, the pair was on a rise, as can be seen by the rising trendline. Yesterday however, the pair couldn’t break past previous highs around 0.9320. The pair reversed and broke the uptrend support. It appears however, that there is some support at the 0.9235 price area, with price sitting just above it right now. Will support hold? Or is it about time the pair retraced? If selling pressure is strong, the pair could dip to former areas of interest around 0.9180 and 0.9100. On the other hand, with stochastics showing oversold conditions, the pair could rise up and break resistance to test the yearly high just above 0.9400.