Wow! It looks like NZDUSD finally caught a break above the resistance at the .7300 handle. Where could it be headed next? It seems like buyers paused to catch their breath as the pair edged lower after hitting a high of .7396. It could pull back even further, possibly until the 38.2% Fibonacci retracement level, which is almost in line with the broken resistance level. With the stochastics sitting in the oversold area, the pair’s rally could resume sooner or later.
Remember that double bottom formation on USDCHF’s 4-hour chart that I showed you a few days ago? Well, USDCHF already made a break of the neckline and proceeded to a high of 1.0641. However, the stochastics seem to indicate that buyers are running out of steam. If sellers take over, they could push the pair back down to retest the neckline, which would be around the 50% retracement level. But if the pair continues to rally, it could encounter resistance around the 1.0670 area.
Here’s an update on that EURJPY chart I did yesterday. It looks like we did see a breakout to the topside! Price topped out at 114.44 and with stochastics showing overbought conditions, we may see buyers take a breather. Look for the pair to find support at 113.30, which acted as strong resistance in the past. Be careful though, because if buying pressure remains strong, we could see price rise all the way up and set new highs near 115.00.