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A lot of action to cover today, so let’s jump straight into it. Up until two weeks ago, GBPCAD had spent the entire first part of the year trading within a 400 pip channel. The first week of September brought about a break of channel support which lead to a 450 pip drop.
Fast forward to today and the pair is forming what could potentially be an inverse head and shoulders. Of course we’ll need to see a 4 hour close above the neckline to confirm the pattern.
Using a measured move puts the objective at former channel resistance around 1.8550.
Summary: Watch for a 4 hour close above neckline resistance and then look for a buying opportunity on a pullback. The pattern is invalidated if the market continues to fall without breaking the neckline.
Next up is AUDCHF. The pair has been in an uptrend since March but has recently started to breakdown. We can see that the pair broke trend line support on September 12th and retested the same level as new resistance on September 16th and 17th.
The market is now resting on a major horizontal support level at .8388. A close below this level could bring on further losses down to .8315 and possibly lower.
Summary: Wait for a daily close below .8388 and then look for bearish price action on a retest as new resistance. Key support comes in at .8315.
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