Ooooh, have you heard about the AUDUSD? It just set a new yearly high, but just barely! The pair hit a high of .8790, and has now formed a double top formation. After this nice attempt to break even higher, we saw the pair make a nosedive all the way down to .8660… which just so happens to have been a former resistance area! Seeing as how the pair bounced from this price, could this now be a support area? Take note, that this lines up with the .618 Fibonacci retracement level – we could see some buyers lurking around that area. We could find further support at .8600, the previous low, or at .8550. If however, buyers take over, we could see another attempt to push back higher. We could see resistance at previous highs, but if buyers are successful, who knows how much higher the pair can go!
Looking at the USDJPY 1-hour chart, it looks like the pair sank back below the resistance level at 91.50. If you use a Fibonacci tool on the recent downslide, you’d notice that the 50% retracement level lines up nicely with previous resistance at 91.50. With the stochastic currently in the overbought region, it seems like downward price movement is due. This downward movement could halt and reverse around the psychologically significant 91.00 handle or at the previous low of 90.50. But if the pair breaks above the resistance at 91.50 yet again, it could head all the way up to the previous high of 92.50 or just until the psychological 92.00 mark.
And lastly, the GBPUSD. From yesterday’s price action we can see that the pair failed to fall all the way down to 1.6300 after bouncing off the resistance at 1.6400. Instead, the pair shot back up and even went past 1.6400 after hitting 1.6350. Currently, the pair is trading above this level again and might continue to move towards 1.6400 or the high that was marked yesterday given the presence of a hidden bullish divergence. Of course not all bullish divergences lead to an upward price movement. So if price falls below 1.6350 for some reason, it might finally visit the support at 1.6300.