A 60-minute chart of NZD/USD is shown above. The NZD/USD finally broke out of the ‘box’ after consolidating since July 20. The pair still has some more room to go higher since the target (computed by projecting the height of the formation from the point of breakout) has not yet been achieved. It might however move sideways for awhile, or even retrace back to 0.6650 or the formation’s resistance-turned-support, before moving higher. The nearest level where the pair might encounter some resistance will be at the psychological 0.6700 mark.
Is the USD/CHF finally able to break free from its usual range-bound march? As seen on the 4-hour chart, the pair has been moving between the 1.0640 and 1.0940 barriers as support and resistance levels respectively. The pair has been able to step out from this range in the past as it pierced above the resistance level, only to fall back in line shortly afterward. It has recently hit the top barrier at 1.0940 before forming a long red candle on the way down to support at 1.0640. Continued selling pressure coaxed this pair to put one toe out of the line yet again, this time breaking below the bottom area of the range. Should we chalk this up as a breakout or is it simply another false break? The stochastic is currently in oversold regions, which means that the price could move up pretty soon. But until where? The previous support could now serve as resistance for the price action; otherwise, the pair could climb all the way and fall back into the range.
After days and days of testing 1.0800, sellers finally managed to pierce through and take the pair as low as 1.0643 yesterday, making a new yearly high again. Everybody is probably wondering now whether, given the broken support, the pair would continue its descent down. If the pair continues its journey south, the next visible key technical support levels it faces are at 1.0550 and 1.0400 respectively. On the other hand, resistance could be found at the previous broken support at 1.0800 and another one at 1.1000.