Daily Chart Art – April 25, 2011

EUR/USD: Daily

EUR/USD Chart

Whaddaya say to a bearish divergence with a side of reversal candlesticks (a shooting star and doji at that!) for breakfast? If you’re up for it, then check out EUR/USD on the daily time frame! Now, if resistance at the 1.4600 handle holds, we may just see EUR/USD tumble down to 1.4200. Don’t get too excited about shorting the pair just yet though. Who knows, there may be enough bulls around to push EUR/USD up to its previous high at 1.5145!

USD/JPY: Daily

USD/JPY Chart

Ever since it encountered resistance at the 85.00 handle, USD/JPY has been heading south. Will it finally make its much anticipated U-turn today? With price forming a clear spinning top near the 82.00 major psychological level, it seems like it might! Meanwhile, Stochastic is also favoring bullishness as it has created a bullish divergence in the oversold territory. If this sucker changes directions and starts treading north, it could climb all the way back up to 85.00. But if it stays on its southern course, it will likely find support at a psychological handle.

GBP/USD: 4-hour

GBP/USD Chart

To those riding the uptrend on Cable: be very, very careful! If you look at the 4-hour chart of the pair, you will see some signs of retracement have appeared. For one, a long-legged doji has formed right on the 1.6600 major psychological handle. And two, Stochastic is slowly moving out of overbought territory. If you’re looking to buy the dips, the area between the 38.2% and 50% Fibonacci retracement levels is a good support region.

  • Starlo

    My favourite is the EUR/USD. I would short it @ 1.4655 SL 1.4735 & TP 1.4325. The real support area might be 1.4190-1.4210 as you say but to play it safe I would step out @ 1.4325.