Will you take a look at that? The rising trend line on the AUDUSD is holding serve like Roger Federer! Right now, a pair of spinning tops can be found – is this a signal for another run to the topside? Stochastics suggest that sellers may be a little too tired from their rally. If so, buyers may push them off the court and dominate the match with some upward spikes! If they succeed, look for them to try to test the yearly highs at .8800. On the other hand, if sellers keep pushing on, we could see the pair drop to support at .8550. This should be interesting to watch – just make sure you don’t get hit by any volatile swings!
Remember that double top chart formation we saw last week? Well, it looks like the neckline at 147.00 finally broke, giving a chance for bears to take the pair all the way down to 140.00. That’s a whopping 700 pip drop in two days! Looking further ahead, if this kind of bearish momentum keeps up and 140.00 gives in, we might see potential support at 139.00 and 136.00 respectively. On the other hand, if the pair retraces, resistance could be found at 143.00, a previous support level.
Could the USDCHF be settling back to range-bound behavior for the next few days? As seen on the 1-hour chart, the pair has been bounded by support at 1.0210 and resistance at 1.0320. The stochastic seems like its headed upwards, indicating that the price could move higher. It could reverse upon hitting the psychological resistance at 1.0300 or upon reaching the top of the range. If the price moves lower, it could find support at the bottom of the range or at the psychologically significant 1.0200 mark.