It seems that the USDCAD pair has found some support on the bottom of the channel after the trend line break a few days ago. With price consolidating just a few pips above 1.1000, the direction the pair would take is hard to say. Also notice the large number of long wicked candles that have formed after the pair touched 1.1100. This, to me, signifies a lot of indecision between sellers and buyers. If sellers manage to take the pair lower, they would encounter significant support for the pair somewhere around the bottom of the channel at 1.0900-1.0950. On the other hand, if buyers take the pair on another trip north, resistance would be found at 1.1100, last month’s high.
The EURJPY has been in a strong downtrend as of late – the question to ask is, is the strong move over? The pair found some support at 131.00, touching the figure before bouncing back up. When it approached the 132.50 price area, it encountered some resistance. Is 132.50 a support turned resistance area? If the pair does break above 132.50, it could find further resistance from the strong downtrend line around 133.00. If the pair does continue to follow the downward path, where will it find support? There aren’t much technical support levels in sight, so we may see some bounces when it does touch psychologically significant numbers like 130.00.
Above is a 60-minute chart of NZD/USD. The pair dropped by a little more than 100 pips after breaking down from a trading range. It was able to find support at 0.6700 but managed to spring back from there. From there, it gradually made its move back to the range’s support. The previous support switched its role and acted as a resistance which pushed back the pair down. Currently, the NZD/USD is attempting to move past the support-turned-resistance again. It can move all the way up to the range’s top if it is able to move above 0.6800 cleanly. On the other hand, it can fall back down to 0.6750 if it fails to.