Yesterday, I pointed out potential resistance at 1.0400 on the hourly chart of the USDCAD. If you zoom out to the 4-hour chart, you’ll see that price has managed to make it all the way to this price level. It looks like buyers will have a difficult time pushing for a higher USDCAD though. For one, 1.0400 coincides neatly with the falling trend line. Secondly, price has already bounced from the 50% Fibonacci retracement level. Finally, stochastics is about to hit overbought territory. If resistance holds, the pair’s next likely stop is this week’s low at 1.0250. Now, if a 4-hour candle manages to close above the falling trend line, the pair could find itself at 1.0450, the 61.8% Fib level.
Now, lets move on over to the EURUSD. The pair had been trading within an ascending channel the past couple of weeks before EUR bulls tried to make a break for it to the top side. Their attempt was unsuccessful, as price is now just chilling near the upper bound of the channel. With stochastic exiting overbought conditions, will sellers now come to reclaim some lost territory? If they succeed, they could pull price down near the middle of the channel at 1.4400, or possibly even all the way down to former support near 1.4300. On the other hand, if buyers decide to try and make another run at it, look for price to test former highs near 1.4600.
Lastly, lets end with the cable. The GBPUSD pair has seem some sideways movement, as it has been trading within a range the last few weeks. The pair has found resistance around the 1.6200 price handle, which just happens to be a former support level. Stochastics has just exited overbought conditions, indicating that sellers may now jump back into the markets. If sellers bring their A game, they could bring price all the way down to test the support at 1.5920. However, if buying pressure remains strong, it could breach resistance and test an area of interest around the 1.6300 price area.