Daily Chart Art – December 20, 2010

AUD/USD: 1-hour

AUD/USD Chart

Check out that rising channel on AUD/USD’s 1-hour chart! The pair has been bouncing up and down inside that channel for a couple of weeks already and it still looks like it’s gonna hold. Stochastic is still climbing to the overbought area, which means that Aussie bulls could have enough energy to push the pair higher. It could move all the way up to the top of the channel and find resistance somewhere near the previous week high of 1.0029. But if the bears take over, they could break the support at the bottom of the channel and drag AUD/USD down to the .9750 area.

GBP/JPY: 1-hour

GBP/JPY Chart

Tiiight! No, I ain’t talkin’ ’bout my fro, son! I’m talkin’ ’bout that descending channel on GBP/JPY! The pair has been trending down lately, but right now, it looks like it’s about to crawl back up. If you dare to go against the trend because you’re feeling extra bullish today, you might want to catch the pair right now and hope that its momentum will carry it all the way up to the top of the channel. But it’s probably wiser to go with the downtrend and wait for the pair to rise to the top so you can short it. The trend is your friend, after all!

EUR/GBP: 1-hour

EUR/GBP Chart

You up for a little range action? Feast your eyes on EUR/GBP! The pair has been bouncing within a 100-pip range for almost a week now, and it looks like it’s on its way to test support for the third time. It still has a bit of distance to cover before it reaches the support level, but Stochastic is already indicating overselling. Planning to buy the pair at the bottom of the range? Look to take profits at the former resistance levels located at around .8500 and .8550. You may also be interested in shorting the pair below .8450. But it would be best for you to wait for a convincingly bearish candlestick to close below that level before committing to short the pair.

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