Daily Chart Art – April 4, 2011

EUR/GBP: Weekly

EUR/GBP Chart

Whoa! I spy with my Ray-B eye a trend line break on EUR/GBP! Now if there’s enough demand for the euro this week, we may just see the pair skyrocket back up to 0.9000. Just remember not to get excited joining the bull camp though. Note that Stochastic is already in the overbought area which could indicate that we’re in for a fakeout and that the pair is in fact on its down!

AUD/JPY: Weekly

AUD/JPY Chart

Next up, let’s take a look at AUD/JPY. The pair has been on a killing spree the last couple of weeks, tearing right through all psychological round figures. The question is, does it have enough juice to break past resistance around the 88.00 mark? This has been a key area of interest in the past, and with Stochastic showing overbought conditions for quite some time now, it wouldn’t surprise me if the recent bullish run comes to an end. But before you decided to take a short position, I would advise you to wait and see how this week’s candle closes. If you see a strong green candle close around 89.00, you might wanna think twice before going short.

GBP/USD: 4-hour

GBP/USD Chart

Aha! With the 38.2% Fib holding on Cable, could it be that sellers just took a break and are revving up to give 1.6000 another shot? Maybe! But don’t take the pound’s swagger for granted just yet. You may want to wait for reversal candlesticks or the Stochastic lines to cross before you bet your pips on the dollar. Who knows, the pair may just race all the way up to 1.6400.