Who’s up for some channel action? AUD/USD is sporting a spiffy channel on the 4-hour chart, and it looks like the pair might be in for some droppin’. The Stochastic is hanging out in the overbought region, and the pair is currently lollygagging right at the top of the channel at .9755. Keep close tabs on this one and see if the pair can drop below .9600 or break the channel and fly all the way to .9970.
It looks like the bears are marking their territory! A bearish flag has formed in Cable’s 4-hour chart right after it had dropped, which suggests that the bears could be taking a breather from feasting on the pair. Is the pound headed for the pip deeps? Stochastic is currently on the middle ground, but keep your eyes peeled for a possible drop to 1.5475, the next possible support. Be careful though as the pair could also rise all the way to 1.5790 in case the bulls decide to take over the markets.
What’s this I see? It looks like USD/CAD will be visiting parity again… The question is, will it able to finally breakthrough? Judging from how the 1.0000 support level has held strongly in the past, it is likely hat we will see another bounce up. But really, you never know how these things turn out! For now, let’s be patient and see what type of daily candlesticks we see form on the 1.0000 level and whether the Stochastics will fall into the oversold territory. Stay tuned for my analysis next week on the pair!