Daily Chart Art – December 8, 2010

GBP/USD: 4-hour

GBP/USD Chart

Here’s a Cable update, folks! It looks like the descending trend line on the 4-hour chart is still holding as GBP/USD hit the 1.5800 area before dropping back down. Plus, there’s a bearish divergence right there since the price is showing higher highs while Stochastic drew lower highs. If the pair resumes its downtrend, it could slide all the way down to those previous lows around the 1.5500 handle. On the other hand, if the trend line breaks, the pair could rally up to the 1.6000 level and beyond!

USDCHF: Daily

USD/CHF Chart

Is it me, or has USD/CHF been rising in the charts lately? The pair has been bouncing along an ascending channel on the daily chart, and is currently on its way up after hitting bottom at .9726 a few days ago. The oversold signal of Stochastic might also support them scrilla bulls. The 1.0100 handle near the top of the channel is a good target for y’all bulls out there, but the bears can also keep an eye out for a break in the pattern all the way to a previous support at .9600.

AUDUSD: Daily

AUD/USD Chart

The Aussie is in for a ride! I see AUD/USD recently rejecting resistance at the top of a descending channel on the daily chart, and Stochastic sporting an overbought signal. After seeing the last red candle with a long wick, the Aussie bears could aim for the .9770 handle, a good support and resistance level. Meanwhile, a break in the pattern can inspire the Aussie bulls to push the pair all the way to 1.0200. Keep close tabs on this one, will ya?