AUDCAD is at an interesting crossroads at the moment. The market was able to break above resistance at 1.0115 today but is capped for now by trend line resistance from April.
Right now I have to favor a break to the upside as this channel on the daily chart is coming off a 930 pip rally from late 2013 to April of this year. Therefore my game plan is to wait for a break above trend line resistance on the 4 hour chart and look to enter on a retest.
The next key resistance doesn’t come in until 1.024 to 1.025.
AUDCHF broke cleanly above the .85 resistance level today as I thought might happen based on last night’s bullish momentum.
As it says in “Technical Analysis 101”, former resistance becomes support. So we can look for long entries based on bullish price action from the .85 level. Just keep in mind that this pair has rallied 130 pips in two days, so the market may need some time to cool off before the next (potential) leg up.
By the way…I made that title up so please don’t go looking for it somewhere in the site’s material. 😉
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