We’ve got two pretty tight potential support/resistance lines looking back at past reaction points. I’m inclined to think it might want to break up to the higher line before falling to hopefully retest the untested line as marked on the chart.
We also have slightly overbought conditions. It could become more overbought.
NZDJPY has become overbought on the 1D, has reached a clear resistance point (currently hanging above). It never, in my mind, fully retested the support/resistance line below. So, I’d possibly look for a “crash” down to that lvl.
We had to back out to the 1D to get a more clear picture. We have an ascending trend line with numerous reactions. We have come down to that point as well as being oversold on the RSI. If this dips below, I’d want to see it come back to test before heading further down. Or, it could easily reverse to head back up.
We needed to back to a 1D view to get a better sense of potential direction. We’ve got an ascending trend line that has 4 key areas of reaction. We are reaching the oversold mark on RSI. I do believe it could become a little more oversold to each this line. At which point, there will either be a reversal to head back up or we could dip below and backtest.
We've got a potential retest of the ascending trend line. We didn't retest this strong support/resistance line when we broke though. Thus, a retest before moving higher is likely; not guaranteed but likely.
We broke above a clear support/resistance line. Before taking a buy, I’d let it retest and confirm. We’ve seen in two previous instances, on this same line, where it broke above only to fail quickly after.
EURJPY is backtesting this pretty steep ascending trend line. It did not retest the reaction zone noted on the chart on either the 1H or the 4H. I would expect it to come back to retest after this giant move up.
We broke a pretty obvious support/resistance line late last week. We did not retest on either the 4H or the 1H. So, I expect us to at least come down and test this horizontal line or break back through.
AUDUSD has played with this marked support/resistance line since back to Feb 2020. We are currently heading towards the descending trend line and that primary support/resistance line. The next few candles could be a good indication of direction for this week.
I'm anticipating this pair coming up to the descending trend line which is also the point of a support/resistance zone and then traveling back down to the bottom support/resistance zone shown on chart. A smaller timeframe view may be needed to capture the best sell position.
AUDCHF looks like it may try recovering above the support/resistance line. I would like to see it break above this minor descending trend line, retest and head back up. If the following candle closes red, this might be the continuation downward toward the 78/100 retracement zone.
So, pay attention to the next two closing 4H candles for a good indication of direction.