It’s the middle of the week, which could mean it’s time for a reversal! If you whip out your 4-hour USDCHF chart, you’ll see the pair is approaching last week’s low. In fact, it looks like a double bottom formation is in the works! Could it be time for the bulls to shine? We’re seeing a lot of bearishness from the markets lately, but stochastics is already indicating overselling. The area of the 1.0180 looks like a likely destination if the pair decides to bounce up. Then again, sellers may just bring the pair below parity and create new lows!
Look at that USDCAD daily chart I showed you above. The pair has been moving inside a range, with support around 1.0150 and resistance at 1.0675. Right now, it looks like the pair is poised to test support again. The question is, would it hold this time? If it does, it might just send USDCAD back up to 1.0675. Sellers seem to be pretty exhausted since stochastics is in the oversold area, suggesting that the pair could move up soon. But in case support breaks, USDCAD could slide back to parity and beyond!
What’s this?! Another possible double bottom formation?! EURGBP’s recent rally has brought it to test a former resistance in the area of .8500. The question is whether it can break the double bottom’s neckline and tread in new heights. If the neckline breaks, the pair may continue to rise to .8800. On the other hand, if the pair fails to break out, it could be headed back down to around .8140.