Let’s start with my thoughts on the AUDUSD. As you can see, the pair appears to be consolidating into an ascending triangle after breaking below the 0.9100 handle. An ascending triangle is usually a bullish pattern but since it is coming off a downtrend, the probability of it moving down is higher. If the pair falls below the triangle’s support, its first level of support will be the previous low at 0.8983. Its downside target, though, would be around 0.8900. But if risk appetite resumes and the pair surges above 0.9100, it could once again move up and retest the resistance around 0.9178.
Next is the NZDUSD pair on its 1-hour chart. Similar to its cousin, AUDUSD, the pair is presently consolidating into a symmetrical triangle. The pair has a downside bias given its current downtrend. Should it break down, its downside target would be around 0.7000. On the flip side, if it breaks to the upside, then its first level of resistance would be around 0.7225.
Check out that descending trend line on the USDCAD daily chart! The pair had five failed attempts to break above that falling resistance level and, right now, it seems to be retesting the trend line. If you look a bit closer, you’d notice that a doji has formed right at the retest of the trend line, which could mean that the recent upward price action is over. Also, I noticed that the price has made lower highs but the oscillator is showing higher highs… That’s a hidden bearish divergence! With the stochastics ready to move out of the overbought area, downward price action could come next. The pair could fall until the 1.0230 area, its previous low, at which it bounced off a couple of times. However, if the pair breaks above the trend line this time, it could find resistance around the 1.0730 level again.