GBPUSD finally livened up today and in doing so engulfed the previous 10 days. Despite the market’s best efforts it fell short of closing above the July highs at 1.7176.
From here I will look to the 4 hour chart for bullish price action from 1.71 to 1.72.
If these daily lows can’t support the market tomorrow we may see a pullback to 1.697 which marks trend line support from November 2013 as well as the 2014 high made on May 6th.
I mentioned yesterday that USDCAD might find support at 1.0693 but that I wasn’t ruling out the possibility of the pair finding support at current levels. The “current levels” at the time of that writing became today’s low.
The market is still looking extremely constructive even after this 140 pip rally over the last three days. At this point I’m keeping an eye out for bullish price action on the 4 hour chart anywhere between 1.0735 and 1.0745.
The next resistance level appears to come in around 1.081.
Another potential setup we discussed yesterday was AUDCHF. The market has been stuck in this channel since mid June, however the pair is starting to put pressure on channel resistance.
Based on where I have my level drawn, the market did appear to close outside of channel resistance on the 4 hour chart. However the break isn’t very decisive so I’d rather way for something that’s more obvious.
If a more obvious break does occur we can look for bullish price action to join the uptrend that has been in place since January.
As a side note, today’s price action also formed a bullish pin bar on the daily chart. However without a clear support level to trade from, and the recent sideways movement, this pin bar isn’t worth trading in my opinion.