Here’s an update from the NZDUSD chart that I put up two days ago. Looks like the pair has bounced continued to shoot down after touching resistance at around 0.7300. With price nearing former lows and stochastic showing oversold conditions, could a triple bottom be in the making? If support holds, price could bounce back up retest resistance at 0.7300 once again. On the other hand, if sellers decide that they want to bust up the range, they may try to break the support and test for new lows. If they succeed, price could fall to as low as 0.6900.
Yesterday was tough for the GBPUSD. From a high of 1.6400, the pair fell more than 300 pips, breaking a significant support level in the process. The pair is starting to retrace some of its losses now but from the looks of it, this will simply be another opportunity for the GBPUSD bears to sell at more expensive levels. Judging from price action and the up trending stochastics, it seems that pair is going for a retest of broken-support-turned-resistance at 1.6200. This price level will prove to be a tough nut to crack since it lines up with the 38.2% Fibonacci retracement level. If 1.6200 holds, the pair’s next stop would probably be the most recent swing low at 1.6080.
Zooming out a bit and taking a look at the 4-hour chart on the GBPJPY, I see that a symmetrical triangle has formed. Price action is now sitting just above the rising trend line, so it may find some support soon and bounce up once again. Also, notice the bullish divergence as price has been registering higher lows while stochastic is showing lower lows. If support holds, we could see the pair find some resistance from the falling trend line at around 146.00. However, with price action consolidating and getting tighter and tighter, we may just see a breakout to either side! If price breaks out to the top, buyers can push price all the way to test the previous high around 149.00. On the other hand, if selling pressure remains strong, price could dip to test lows at 143.00 and 142.00.