After the EURUSD’s steep drop a few weeks back, it seems like the pair is starting to rally its way back to this year’s high. However, looking at the 4-hour chart, the 1.4900 handle is proving to be significant roadblock for the pair, especially since this price level coincides with the .618 Fibonacci retracement level. With stochastics at overbought territory, could sellers start jumping back in? If sellers overcome buyers, look for potential support at 1.4700, last week’s low. On the other hand, if 1.4900 breaks, the pair could head all the way to this year’s high, around the 1.5050 price region.
The GBPUSD has been on a wild roller coaster ride in the past couple of weeks, rallying one day and dropping the next. We can see that the pair has formed a side wards channel with lower bound support at 1.6260 (broken resistance turned support) and upper bound resistance at 1.6600 (psychological round number). Stochastics is currently indicating that the pair might be overbought. With price already bouncing from the 1.6600 price level, would sellers start pushing the pair back down to the bottom of the channel?
Choppy trading on the USDCHF, as its been sliced and diced like Swiss cheese! Despite the movement, the pair has been respecting minor support and resistance as of late. The pair has had minor resistance at 1.0280 and minor support at 1.0130. There has also been interest near the psychologically round figure of 1.0200. With the pair consolidating right now, we could be in line for a strong one direction move. If buyers take control, we could see the pair test the 1.0200 handle, which lines up just below the .382 Fibonacci retracement level. If buying busts through, it could test former resistance at 1.0280, or the previous high at 1.0340. On the other hand, if sellers decide to take over, we could see a move towards support at 1.0130. If that doesn’t hold, price could dip and 1.0100 and lower.