Lookin’ to keep it simple with some good ol’ support and resistance plays today?
These pairs are already testing key inflection points right now!
Will we see a bounce or a break?
Aussie bulls, where you at?
AUD/CHF is sitting right on the bottom of its range visible on the 4-hour time frame, still deciding where to go next.
A bounce could take it back to the resistance at the .6700 major psychological mark while a break below .6600 could trigger a drop that’s the same height as the range.
Stochastic is hinting that the floor is more likely to hold, as the oscillator has started to pull higher from the oversold region.
This means that bullish pressure is picking up and might be strong enough to take AUD/CHF back to the top or at least until the area of interest at the middle.
Better watch out for some dynamic resistance around the moving averages, too!
If you’re bearish on the commodity currencies, then this setup is worth checking out!
EUR/CAD has been pacing back and forth between support at the 1.3050 minor psychological level and resistance at 1.3250. The pair is testing the bottom of the range at the moment and might be ready to bounce back to the top.
Technical indicators still seem to be pointing to more losses, though, as the 100 SMA is below the 200 SMA to reflect selling pressure.
At the same time, Stochastic has a bit more room to head south before turning higher from the oversold region. Those lower highs are also suggesting that euro bears won’t back down so easily.
If you’re hoping to catch a short play, keep your eyes peeled for long red candlesticks closing below the bottom of the range.
On the other hand, reversal candlestick patterns around the support level might mean that euro bulls are about to charge again.