Daily Chart Art – February 1, 2011

USD/CAD: Daily

USD/CAD Chart

Let’s kick off February with a bang! Here’s something for y’all to keep an eye on. Yesterday, price action on USD/CAD formed a clear doji above parity. As you can see, parity has been a significant support and resistance level as of late. Are you already itching to play this setup? Hold your horses, cowboy! It’d be best to wait for today’s daily candlestick to close before jumping in. If a bearish marubozu closes below parity, take it as a sign that the pair could be headed back down below .9900. But if a bullish candlestick closes convincingly above parity, then it might mean that USD/CAD is ready to climb back up to 1.0200.

GBP/JPY: 4-hour

GBP/JPY Chart

GBP/JPY is fast approaching 132.50 and it looksoji like it’s got a lot of steam behind it! But does it have what it takes to finally break above this significant resistance level? Stochastic isn’t in overbought territory yet, so there could still be room for it to rise. But once Stochastic signals overselling, you might want to switch to bear mode! Whenever price tested resistance in the past, Stochastic was able to successfully confirm the succeeding fall. Let’s see if history will repeat itself… again!

USD/JPY: 4-hour

USD/JPY Chart

And last but not the least, let’s move on to USD/JPY. As you can see, price is currently testing the bottom of its 100 pip range. I can’t predict the future but with Stochastic dancing around the oversold territory and price unable to pierce through major support at 82.00, the bias is for a move up! Let’s see if the bulls are able to push the pair up to the 83.00 level again.