8 Hour Chart
2 Hour Chart
Looking over 8 hr and the 2hr time frame - expectations are there that we may have a temporary top coming in place to 707X-8X zone.
A retest back to the levels would be better option to try shorts on a failure to get above with ideal testing ground be 697X zone with extended and optimum run lower coming to 691X-2X.. We either should see a bigger bounce back up or a break lower and any retest failures upto 698X thereof to constitute further momentum lower on the pair.
The pair has likely broken through to the upside and with few 4 hr candle closing above the break point shows potential for a run towards 756X for starters with momentum than likely to shift for further break higher and a run towards 767X-8X zone where a formidable resistance lies ahead.
AUDUSD 4 hr - Potential price action play going forward.....
Short term possible trade setup
Momentum indicating we can see a possible break lower for a push down. Current price action within an ascending wedge and the break and a close lower can see the pair plunging towards 123.9X with extended run towards 123.65-7X
Mostly anticipated that Swiss Franc truly reflects the move on the US DOLLAR. With that said; looking at tech plays on the US DOLLAR & the Swiss Franc. Both at their respective main support zone.
A break can play havoc specially for the US DOLLAR and as such where do we close on the US DOLLAR & the Swissy Today / Monday will be interesting.
EURUSD....... In light of the French Election what Technical are hinting at...
I'm not going to go in details on the French Election and what I may on the possible outcome. The only important factor possibly can be the Le Pen making it to the second round & the fear and dilemma it can bring leading to possible Frexit and the collapse of EU.
To think about it; the co founder of the EU pulling away could be catastrophic for the EURO.
Anyways coming back to the main point here & with expected wide moves to happen; I have used bigger time frames like Monthly & Weekly to illustrate my technical point of view. Though these tech moves will be off the back ground of the fundamental aspect of the news outcome - yet we can layout possible zones for the price to travel.
EURUSD Monthly ( First Chart) - In a Nutshell any power break out of the current downward channel in play ( T2 & T4 ) can either hit EURUSD all the way back up to test where the possible end of correction zone lies to 1.23 to 1.24 handle or down towards 0.90 handle. Given the width to either side - this makes all eyes on the French Election.
EURUSD Monthly ( Second Chart) - A zoomed up view & added few tech clauses to it. Pretty straight forward...
EURUSD Weekly - Here I have illustrated some tech points and the main plays been the Bear Flag breakout earlier and where we residing on the price action projects another possible Bear Flag in play.
Unlike Monthly which leads the initial channel top to 1.12XX; on the weekly its roughly to 1.1000 handle which is fine as this to be taken an earlier step or ladder require to get to where the bigger time frame is projecting.
EURUSD Daily - Again unlike Weekly 1.095X-6X comes in as initial end of correction / break point for rallies to unfold up north or collapse under. Again smaller time frames projecting break earlier or acting as an earlier warning signs.
USDCAD 2 hr & 30 mins
Just a short term view on the pair. Given some surge on the Oil; CAD has enjoyed some strength and this likely to continue in coming days.
For the time been we are likely closing it on the support for the day around 3325-30; though still a better looking support comes to around 3295-3300 zone that likely to get a test soon. A break if occurring opens up for a drop to 322X-3X prime support. Would expect this support to hold and try to force rallies up north.
Once again only a short term setup; where if the price falls under 3325-30 and starts holding lower should attempt a test of 3300. A break there opens it up for a drop to the better listed support.
GBPJPY 8 hr -
More of a follow through off the USDJPY chart - Incase the USDJPY does end up been lower and into the 109.XX zone; would expect the GBPJPY down to lower 135.XX as well. This just comes in as a base of what appears to be a falling wedge ( T2 & T3 ) on the first chart and a break carries potential surge up to 144.XX..
Again; this is in comparison to the USDJPY which if end up doing a 109.XX can see a possible lower stab on the GBPJPY; before a surge higher.
Offcourse a close eye on the Brexit and Article 50 need to be carefully watched and the reaction it can carry.. A move under 135.10-15 would be catastrophic for the pair.
USDJPY DAILY -
More in line with my last post - just spotting what could eventually turn out to be a massive Bull Flag.
Mid 109.XX still looks attractive zone to get a test on; even though we seeing a pretty solid fortification down to 110.6X making a stand and eager to get going to the higher side..
Nevertheless; pinning it up on a pattern - mid 109.XX still can't be ignore out..
USDJPY 8 hr & Daily -
The pair has landed on some very important resistance namely to 111.2X-3X zone.
Currently expected pull backs off here; however a break can open the flood gates for stabs lower with mid to higher 109.XX would initial interim target.
The fallout on the stocks yesterday charged the rally on the JPY and we will find out; this beast wants to stop and take a breather or would continue on the rampage.
111.2X-3X break and a close under would signal that USDJPY is not done and hungry for more.
USDCAD 8 hr & 4 hr -
I have used 2 different time zones to illustrate my point of view. The overall scenario is we can't ignore another move lower to testing FOMC lows. However; won't mind an intial small move higher towards 338X to see it fails there for short trades to be picked up.
Both the 4 & 8 hrs shows that any failure upon a retest ( and given almost a heavy consolidation mode to the current levels past 2 trading days ) and a failure can prompt a quick fire move to the lower side.
Alternatively - A break and a close higher to 3385-90 would prompt rallies to the north.
This makes 338X important going forward...
Tahir Khan, or better known online as Stryker has been dealing in the global markets for 15 years. He as developed extensive knowledge in FX / Indices / Commodities and Futures. He is one of the most active members on some of the best Forex forums in the world.
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