AUDUSD:
The AUD is approaching very strong long range Resistance between .9350 and .9400. We have seen price action bounce off these levels at least twice in the past year, thus forming a double top as shown by the arrows. However, the AUD is trending strong as indicated by the consistent support and resistance trend lines. At bounce lower thereby forming a triple top would validate this level as a strong resistance level, thereby leaving bulls with no more room to run. If we do see a breach of resistance we expect to see very strong price action as the AUD will reach for .9500.
USDCAD:
This continues to be an exciting pair to watch as the daily volatility on this pair is nearing all time highs. However, in spite of the sharp moves higher and lower we essentially have the CAD trading a very wide range between 1.0650 and 1.0150 with minor pullbacks near 1.04 or the 50% level. Many support and resistance (S&R) traders will be lining up to catch these moves on the bounce with stops placed just above/below support and resistance. However, those stops will lead to cascading price action on a break higher or lower. A period of consolidation or smaller candles may tip us to a potential break of support and resistance whereas a sharp move lower or higher on these big candles may leave little strength for bulls/bears to breach S&R.
USDCHF:
The CHF is approaching very strong resistance on the 1hr chart below. In contrast to the analysis above whereby we use a daily chart, sometimes peeking inside of the daily candles allows you spot underlying resistance within the overall price action. There is a triple bottom that sits right at 1.0070 and each bounce off that level has been significant. It suggests that if we actually see a close on a 1hr candle, below resistance that the CHF should easily be pushed to parity on the ensuing price action. However, if we see a reversal mounting then expect to see the CHF move back above a 1.02 handle.
Written by bforex.com
