Let me start off with a look at the USDCHF. Will you look at that rising trend line? It’s been tested numerous times and has held each time. Price bounced off the trend line yesterday, soaring as high as 1.0780 before finding resistance. With price reversing, we could see the pair retest the support line once again. If it fails to hold, look for a break all the way down to 1.0550. On the other hand, if buying pressure remains strong, we could see the pair rise and test resistance at 1.0780 once again.
After days of holding on, the EURJPY bears finally managed to come out victorious, keeping the 124.00 price handle – which lined up with the 50% Fibonacci retracement level – intact. Now, with the bears in control, price looks like its going to fall to the previous week’s low at the 120.70-121.00 price region. However, I’d watch out carefully for 122.00 as there is some minor support there. We could see the bulls start jumping in there and aim for a retest of 124.00.
And to cap the week off, let’s end with the USDCAD. As you can see from the 4-hour chart I posted above, the USDCAD bears finally managed to crack support at 1.0550 yesterday. Judging from the long, red, bearish candle, selling momentum is pretty strong. It seems that the bears are trying to push price to 1.0400, the next major support level. Still, there is a chance that we could still see a retest of 1.0550 first as stochastic indicates that the pair is already oversold.