I’m seeing a mix of potential trend and range setups on the longer-term charts this week! Think any of these inflection points might hold?
First up is this classic break-and-retest setup materializing on the daily time frame of AUD/CHF. This pair has been trading below a descending trend line and it looks like another test of resistance is in order.
Applying the handy-dandy Fib tool on the latest swing high and low shows that the 61.8% level coincides with this trend line and also an area of interest at the .7300 major psychological mark. At the same time, stochastic is hanging out around the overbought zone to signal exhaustion among buyers and a possible return in selling pressure soon.
Next up we’ve got this long-term ascending trend channel on the daily time frame of EUR/CAD. Buyers might be waiting to jump in on a test of the bottom around the 1.5700 to 1.5800 zone, allowing support to hold and the uptrend to resume.
Stochastic is on its way down but nearing the overbought zone to signal that sellers are feeling tired. If buyers are able to take over, a bounce back to the channel top or at least until the mid-channel area of interest at 1.6300 could be seen.
Lastly here’s a simple range setup on the 4-hour time frame of NZD/JPY. This pair is already testing the top and might be due for an upside break, which could result in a climb that’s the same height as the rectangle pattern.
If resistance holds, on the other hand, a move back to bottom of the range at the 72.50 minor psychological mark could be in the works. Do watch out for the area of interest at the middle of the range as buyers might be waiting there, too!
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