Let’s first take a look at the 4-hour chart of the USDCAD. The pair has rallied back to its 38.2% Fibonacci retracement level after falling to its 15-month low of 1.0062. Will the 38.2% Fib keep the pair from moving higher? The next level of resistance would be at its 50% Fib which is around 1.0371 if 1.0298 breaks. But if it holds, the pair could fall back again to the 1.0100 handle or even revisit 1.0061.
How’s it going in the EURUSD 4-hour chart? After breaking below the key support level around 1.3450, the pair dived to a low of 1.3267 last week. It seems that the selling frenzy has died down a bit, allowing the pair to pull back to the 38.2% Fibonacci retracement level, which lines up with the broken support at 1.3450. Would this serve as resistance this time around? If it does, it could push the pair back to its previous week low of 1.3267. On the other hand, the pair could still retrace higher, possibly until the 50% Fibonacci level, which also coincides with a previous support level.
Technically, the foreseeable future isn’t looking too good for the Aussie bulls right now. As you can see, the AUDUSD has recently broken its uptrend line. It even broke below the neckline of the head and shoulders formation already. The pair could still move higher especially if it manages to punch through the resistance at the formation’s former neckline. But if the resistance there does not crack, then the pair could fall and find itself somewhere around 0.9000.