Show me the Aussie!! The Aussie screamed to a new yearly high yesterday, as it broke out of a range that it had been trading in the past week. The pair shot up and hit 0.8750, where it seems to have some trouble breaking through. Could it be that buyers are tired after yesterdays strong push? With stochastics showing that the pair is exiting overbought conditions, we may see a short pullback. The pair may find support at the top of the former range, near 0.8680. If sellers put enough pressure, we could see price pushed back down, where it could test the psychologically significant support at 0.8700 or further down at 0.8650. If however, the AUDUSD continues this bullish run, we may an attempt to break past 0.8750, with the 0.8800 price mark as the next target.
Remember that descending channel we saw on the USDCHF 1-hour chart a few days ago? Well, guess what? The pair is still stuck inside that channel! It has just bounced off from the bottom of the channel and is starting to climb back up. The stochastic is also making its way out of the oversold area, implying that the pair could start moving higher. If it does, it could encounter some resistance at the top of the channel or at the previous high of 1.0370. But if it drops back down, it could find support at the bottom of the channel or at the psychologically significant 1.0300 mark.
It seems a bearish technical signal has popped up on the daily chart of the GBPJPY. Notice how the pair saw resistance at 163.00 twice and fell back sharply down after. Now, a double top chart pattern has formed with neckline support at 149.00. If traders continue to take the pair lower and break the neckline support, the pair could head to as low as 147.00. On the other hand, if 149.00 remains intact and the pair bounces upwards, potential resistance could be found at the previous swing high at 153.00.