In this video, Gail Mercer, founder of TradersHelpDesk, discusses the potential moves in the currencies. With the RSI overbought on the GBPUSD, EURUSD, and AUDUSD, a retracement down is likely. Plus, the RSI is curling upwards on the USDCHF, USDJPY, and USDCAD, indicating a likely retracement to the upside.
On the AUDUSD, although the market is retracing, there is support at .7950 and .7930 that needs to be broken before the market can continue down.
On the EURUSD, the 1.2234 and 1.2200 support areas need to be watched. If these areas offer support, then the EURUSD will potential go up.
On the GBPUSD, the key support area to watch is 1.3740. If price manages to break through this area, we may see more downward market action.
On the USDCHF, the lower timeframes are heading up but there are key resistance levels at .9650 and .9670. In order for the USDCHF to continue moving up, these areas will need to be broken and then a test for support should occur clearing the path for this currency to move up.
On the USDCAD, the lower timeframes are heading up but there are key resistance levels at 1.2440 and 1.2470. In order for the USDCAD to continue to move up, these areas will need to be broken.
On the USDJPY, the currency is testing the 110.60 area for support at this time. Although hidden divergence developed on the 240-minute chart and the market has moved down, with support potentially developing at the 110.60 area, the market could potentially go up from here. Plus, the Stochastics is almost at the point of being oversold on the 60-minute (which is where the test for support is developing) with sellers decreasing on the lows. If the support area holds on the 60-minute chart, the next overhead resistance is at 111.10.