Remember that inverse head and shoulders formation on the AUDUSD 4-hour chart? Well, after breaking above the neckline a few days ago, the pair surged to a high of 0.9036 before pulling back. It then retested the neckline, just a few pips above the psychological 0.8900 handle. From here, the pair could resume its uptrend and retest the resistance at the previous high. However, the stochastics are still on middle ground, suggesting that there could be enough selling pressure to push the pair lower. If it drops, it could find support around the area of interest at the psychologically significant 0.8800 mark.
Check out the rising channel on the USDCHF 1-hour chart! The pair has been bouncing up and down within this range for almost a couple of weeks now. But when the USD staged a strong rally yesterday, the pair was able to muster enough momentum to break above the top of the channel. Since the stochastics are not quite in the overbought region yet, this suggests that the pair could continue to climb much higher and even break past the psychological 1.0900 level. When the buyers run out of juice, the pair could pull back and possibly retest the broken resistance of the channel.
Whoa! Check out that strong upward move by the USDCAD! The pair, after touching down at 1.0400, quickly reversed and sprung all the way back up above 1.0500. And in one swift move, the it was able to eclipse its decline for the past couple of days. Presently, however, it is experiencing some resistance at 1.0500. It can reach 1.0550 if it can successfully breach 1.0500. Though, it can also fall back down to 1.0400 if it is unable to do so.