Daily Chart Art – December 2, 2010

NZD/USD: Daily

NZD/USD Chart

Aww yeeeeah! Let’s keep it gangsta with this sick setup on NZD/USD! Pull up the daily chart and you’ll see price just found itself at the intersection of a rising trend line and a former resistance. Stochastics turning up from oversold territory could be a sign that the bulls are ready to get back into the game. And to top it all off, a bullish engulfing candlestick just formed! Sweet! But remember, there’s no such thing as a “sure thing” in trading, and there’s always a chance that bears are just taking a breather before driving the pair lower.

EUR/USD: 4-hour

EUR/USD Chart

Climb, baby, climb! After dropping like a rock for the past seven days, EUR/USD looks like its in the midst of a massive retracement. How high can the pair go? Hah, we can’t predict the future, but we can make good trade decisions by keeping an eye out for those important levels! In this case, watch closely how price reacts to the 38.2% and 50.0% Fibonacci retracement levels, as those levels nicely lineup with the falling trend line resistance. If EUR/USD stalls on those levels, then it could give us a good reason to jump in the overall downtrend and “sell high!”

EUR/JPY: 1-hour

EUR/JPY Chart

Hey, hey, hey! What’s this I see? Another chance to short the euro? Yesterday’s bull run seems to have stalled in the area of a former support level. Since plenty of long-wicked candlesticks have formed here, it could mean that this is an area of interest for many traders. Price could be headed all the way back down to 108.50 if this support-turned-resistance level holds. On the other hand, if buyers force a break of resistance, the next stop might be at the former resistance level at around 111.75.