Fairly quiet day across the market as there wasn’t a lot of event risk to move things along. The Aussie Dollar does have some event risk coming up in a few hours, so with that said let’s get to our first pair.
The AUDCHF setup was textbook in terms of what we want to see as price action traders. We had an uptrend, a breakout, a well-defined pin bar and a key level to use as an entry point. We also have a favorable risk to reward ratio.
Today’s pullback is expected as this pair likes to retrace most of the previous day’s range. From here the June 12th high around .848 should provide some resistance with a second target being the two lows made in October and November of last year at .850.
CHFJPY is another pair we’ve been talking about. The market recently broke trend line support on July 10th (notice the retest on 7/14 and 7/15). A few days later the pair broke through key support at 113 which is marked by several lows over the last several weeks.
Considering last week’s aggressive move down, we may see a few days of sideways movement back into key resistance at 113. It will be especially important to watch how the market reacts to this level.
To the downside the next key support doesn’t appear to come in until 111.70.
EURCAD Weekly chart
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