Is that a descending triangle forming on daily chart of USD/CAD? Well, a lot will depend on how traders react to the crucial 1.0000 handle! The parity mark has held as a psychological area of interest in the past, so it’ll be interesting to see whether sellers are carrying enough firepower to bust through it. However, with Stochastic entering oversold turf, it’s a tough call! Look out for a reversal candlestick pattern as a sign that buyers are packin’ the real deal and could be in for a comeback. But if we see a solid red candle that closes below 1.000, it could be a sign that sellers are looking for blood!
Now, let’s check out what’s up with the Aussie. Whoa! That sexy long-legged doji coupled with Stochastic showing overbought conditions could suggest that there ain’t enough buyers to represent and AUD/USD could head back down again. Sticking some Fibs on the pair, we see that it may retrace some of its gains back to the 61.8% Fib level at parity! But down be so hasty betting your pips on a retracement just yet. Who knows, buyers may just be revving up to push AUD/USD to a new high!
Get first dibs on Guppy y’all! Hmm, I wonder if there are ‘nuf buyers left for the pair to break out like my brotha Lil Wayne who just got out of prison yesterday! Anyway, it looks like GBP/JPY is hustlin’ to break above that falling trend line but with Stochastic just hitting the overbought territory, it may suggest that the pair could meet some resistance and tumble back to support at 128.25. Then again, the lines haven’t crossed or turned yet which could imply that there might be enough pound-lovin’ to go around to push the pair past the trend line and back to its previous high at 135.00.