Take a look at that ascending channel on the USDCHF 1-hour chart… The pair has been bouncing up and down inside this channel since last week. Let’s see if it holds for another week… Right now, the pair is in the middle of the channel and it seems like the stochastic indicates that the pair could still head a little lower. It dip to the bottom of the channel at which it could find support. If the pair moves up, it could encounter resistance at the psychologically significant 1.0400 mark. The upward price action could also reverse upon hitting the top of the channel.
Now, let’s move on to the EURUSD! The pair’s remote is still in the shop, which is why it’s been stuck in a descending channel! The pair has been touching both the upper and lower bounds of the channel and has just been bouncing between it. As it is, the pair is approaching the upper bound line – will it finally break? If it does, look for it to test former highs at 1.4650 and 1.4700. There are however, other bearish signs as stochastic is showing overbought conditions, as well as some bearish divergence. If the pair falls again, look for it to try and test news lows, possibly at 1.4500.
Here’s a short but sweet update of the GBPUSD chart that I previously drew. The pair sprung back from 1.5800 after breaking through the support at 1.6000 which happens to be the head and shoulder’s neckline. Currently, it is making a “return move” to test the mentioned level. It can reach 1.6100 if it can move past it. But if not, it can fall all the way back to 1.5900 or even down to 1.5800.