That’s the big question right now – will the .836 level on CADCHF hold? We did get a bullish pin bar on the 4 hour chart today, however it occurred within congestion so it isn’t the strongest signal. In other words the tail of the pin bar doesn’t stick out from the surrounding price action, which is what we want to see.
As of this writing the level is still in tact. We’ll have to see which way this market decides to break; I think the next 24 hours should tell the tale.
AUDCHF isn’t one I cover much so I figured I’d talk about the channel that’s been forming since mid June. Not only can you trade the highs and lows within a well-defined channel like this, it can also be useful for signaling a potential breakout.
A 4 hour close outside of this channel should give us a pretty good indication of where the market wants to go.
One level I’m keeping an eye on is the .7967 level on EURGBP. I’ll be watching for bearish price action on the 4 hour and daily chart as the market approaches this level in the coming days.
One pair that I don’t trade that often is USDCHF. This is mostly due to the fact that I find it choppy (which is the same reason I don’t trade EURUSD that often).
Having said that, the .891 level could prove interesting over the next few days. This is a key level in the market and should provide support as the market approaches.
But what’s more interesting is what’s happening on the weekly chart (see last chart in this post).
USDCHF weekly chart