Today, the Forex market made up for recent slowness. Several pairs made significant moves, with the AUDUSD being one of them. The pair finally showed its hand today, reacting favorably to the pin bar that formed last Friday. We already knew today’s move was likely based on yesterday’s analysis.
If the pair can continue its rally, the next stop looks to be the .942 level. This level is represented by several highs from last month.
The NZDJPY also rocketed higher today with a break of the mother bar high. The inside bar that formed yesterday was clearly significant.
The focus now becomes whether the pair can hold these levels. Today’s close was not the most bullish. As I write this, price has already retraced 30 pips from today’s close. There is near-term support that appears to come in at the 88.48 level.
USDCHF was another one that was featured in yesterday’s post. There was a good chance of a break lower based on the bearish pin bar setup that formed last week. We got confirmation of that break today with a drop of almost 60 pips.
If price action can break near-term lows around the .87 level, there’s a good chance of a push lower. If that happens, the next key support level doesn’t appear to come in until the .855 level (see chart at the bottom of this post)
USDCHF next key support level from 2011…