One pair I’ve been watching for a while is USDCAD. The pair provided a lot of price action setups late last year, but for the past few months it has consolidated into this bullish wedge pattern.
The wedge was broken on May 20th and I figured we would see a move higher. Instead the pair has moved lower and is now resting on the upper boundary of the former wedge along with near-term support at 1.085.
Although there’s no price action strategy present, today’s rejection of this support level makes a strong case for a move higher to retest the key level at 1.094 in the coming days. Tomorrow should tell the full story.
We’ve been following AUDJPY ever since the trend line break on May 16th. The market is now testing the underside of former support (now resistance) at 94.56.
A bearish pin bar at this level would make for an ideal setup. The risk to reward ratio from this level would also be appealing. We’ll have to wait and see what tomorrow brings.
I posted yesterday that the next level of resistance for USDCHF should come in around .8985. Price came close to this level today before closing lower.
Even if we were to get a bullish signal at current levels, the market is too extended at this point to justify an entry. I’ll be waiting on the sidelines to see if the market retraces to .8920 or even .8850 in the coming days and weeks.
