Let’s start today with my thoughts on the AUDJPY. As you can see, the pair fell all the way down to the 61.8% Fibonacci retracement level after breaking down from a head and shoulder formation. The pair suddenly made a sharp V-turn in just one swift and quick move shortly after touching the 80.27 mark. It then found itself retesting the neckline but was unable to move past it. People say that the third time’s the charm and so it was. On its next attempt, the pair finally breached the neckline. Presently, it is trading above the mentioned level. 81.00 could act as a support that would keep it from falling further. If buying interest shows up then it’s also possible for the pair to reach its previous high just below 82.00.
Well, as exhibited above, the cable has been ranging for the past couple of days. Trading is expected to be light ahead of Christmas so it is more likely for the pair to just move within 1.6200 and 1.6320. If the pair breaks above the range’s resistance, then its next notable hurdle would be at 1.6450. On the other hand, if the pair falls below the range’s support then its downside target (calculated by projecting the height of the range from the point of breakout) would be 1.6050.
Now, let’s find out how the Kiwi’s doing. The NZDUSD 1-hour chart shows that the pair just bounced after hitting the 38.2% Fibonacci retracement level, which happens to coincide with previous support around 0.7212. The pair then edged higher but was unable to break through resistance near the psychologically significant 0.7300 handle. If it surges past the 0.7300 mark, it could keep soaring higher once it breaks the resistance at the previous week high of 0.7320. However, the stochastics seem to be headed downwards, suggesting that the pair could drop down as well. If the support at 0.7212 fails to hold, the pair could tumble all the way down to the previous week’s low of 0.7045.