Daily Chart Art – December 9, 2011

GBP/USD: 1-hour

GBP/USD 1-hour Chart

Looking for another shot at buying up the British pound? Well, you may get your chance soon enough! GBP/USD has been trading between 1.5750 and 1.5600 for over a week now, and it looks as though it’s about to test the bottom of the range. With Stochastic showing oversold conditions and a bullish divergence, it seems as though the pair is due for a turnaround. If buyers take control once again, expect them to bring the pair back up to the top of the range. On the other hand, if sellers manage to push GBP/USD below 1.5600, they could force to pair to forge a new monthly low.

AUD/USD: 1-hour

AUD/USD 1-hour Chart

Will you look at that – another solid range! Over the past few days, AUD/USD traders have established resistance at 1.0300 and support at around 1.0160. Seeing as how price is currently stalling right above 1.0160 and Stochastic is deeply oversold, it seems traders are not yet prepared to take this pair lower. That being the case, the pair could very well end up rallying back up to test resistance at 1.0300.

USD/CHF: 4-hour

USD/CHF 4-hour Chart

Last but not least, we’ve got this long-term setup on USD/CHF. You’ll notice that the pair has been flirting with the .9300 psychological handle in recent days, and the higher lows on USD/CHF seem to suggest that the pair will come to touch this level soon. Will it finally break above this major resistance level? In times like these, it’s best to let candlesticks guide the way. A bullish marubozu above .9300 could signal fresh highs for the pair, while a bearish candlestick pattern might signal the start of a trend reversal.