Look at USD/CAD go! After dipping a couple of pips close to parity last week, USD/CAD zoomed up and took out one psychological level after another. How much higher can it go? Stochastic is already in the overbought area but, if buyers still have enough energy, they can still take the pair up to resistance around 1.0250. But if sellers take the upper hand, they could push the pair back down to the support area near the 1.0000 handle.
For y’all woozy folks who are having a sugar rush high from yo grandma’s Christmas cookies, here’s a simple one for ya. EUR/GBP has been steadily rising on the daily chart after hitting bottom near the .8100 handle a few weeks ago. Stochastic isn’t in the overbought region just yet, but we’ll never know with them euro pairs. See if the pair goes for another dip to the trend line near the .8400 handle, or if it will go all the way up to the resistance at the .8600 level.
I’m seein’ a flag over here, and nope, it’s not Santa’s entourage comin’ to town! USD/CHF took a break from falling in the daily chart a few weeks ago, and is now moving within a range that’s looking a lot like a bearish flag. Will the pair stick to the pattern and climb all the way near the 1.100 handle? Stochastic is currently giving a go signal for the bulls, but we’ll never know what other tricks the bears might have under their furs, so also prepare to see new lows for this pair!