I’ve got another bunch of pullback opportunities on today’s canvas!
Check out these trend correction levels on AUD/JPY and USD/CHF.
USD/CHF: 1-hour
First up is this simple downtrend pullback on the hourly chart of USD/CHF.
Any chance to catch this selloff?
The pair has been cruising inside a descending channel with its lower highs and lower lows since the start of the year, and it looks like another test of resistance is due.
Using the handy-dandy Fib tool shows that the 50% level is near the mid-channel area of interest at .9175 while the 61.8% retracement is closer to the .9200 major psychological mark.
The dynamic inflection points at the moving averages are right in between these Fib levels, making it a good spot for sellers to hop in. If any of these hold as resistance, USD/CHF could make its way back to the swing low.
Technical indicators suggest that the odds are in favor of more declines, as Stochastic is reflecting overbought conditions while the 100 SMA is below the 200 SMA.
AUD/JPY: 4-hour
Next we’ve got this bullish Aussie setup that’s already starting to play out.
AUD/JPY is already retreating to the 38.2% Fibonacci retracement level, which coincides with the 91.00 major psychological support and 100 SMA dynamic support.
If AUD bulls are eager to charge at this point, the pair could resume the climb to the swing high close to the 93.00 mark or the top of the ascending channel seen on its 4-hour time frame.
A larger correction, on the other hand, could still dip to the 50% Fib near the 90.50 minor psychological mark or the 61.8% level closer to the channel bottom.
Stochastic still has a bit of room to head south, after all, so there could be some bearish pressure present. Just don’t forget that the 100 SMA is safely above the 200 SMA to hint that the uptrend is more likely to carry on than to reverse.
