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Price Action Setups: CADCHF Textbook Level to Watch

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Every once in a while the Forex market pulls a level out from the “Confluence” textbook. The kind of level where everything seems to intersect at once. Now whether or not the market reaches that level and gives us price action to work with is another story…

CADCHF gave us such a level last week. We’ll start with the 4 hour chart below. As you can see, the .836 level is represented by several highs over the past couple weeks.

This level also intersects with trend line support from June 6th.

cadchf daily forex chart

If that wasn’t enough, the 50% Fibonacci retracement lines up perfectly with .836 when using the swing low on July 1st to the recent high made yesterday.

Also note (although not depicted) that our 10 and 20 EMAs look to intersect with this area on the daily chart, if the market reaches this level of course.

This is one of the better levels I’ve seen all year in terms of trade potential. Of course as always, the key words is “potential”. I’d like to see bullish price action at this level as confirmation, should the market make it that far south.

cadchf 4 hour forex chart

EURUSD found support at the 1.3584 level on Friday. There isn’t much to do at the moment considering the recent choppiness.

I’m on the sidelines to see if we can’t make it to 1.3475, which is the intersection of the February low and the trend line from July of 2012. This area may give us something to work with.

eurusd daily forex chart

AUDUSD was unable to hold .944 last week after the market had broken above it on July 1st. The pair subsequently crashed through trend line support on Thursday and continues to look vulnerable at current levels.

Current levels aren’t of much interest. However if the pair can climb back between .940 and .944 to retest the former trend line as resistance, I may be interested in selling this market given the right price action sell signal.

audusd daily forex chart

Last but not least is GBPJPY. The pair had a big week last week, breaking above 174.80 to levels that haven’t been seen since 2008.

From here I think we may see some sideways price action before the market is ready to move again. If we get a daily close below 174.80 we can look to the high on June 20th at 174 as possible support.

gbpjpy daily forex chart

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