Daily Chart Art – February 11, 2011

GBP/USD: Daily


First up, let’s start with an update on Cable. The pair has been on a nice bullish run to start 2011, but it seems to have run into resistance at 1.6250. It now seems that bearish divergence is forming, with a shooting star forming as well. Could this be a top for GBP/USD and will pound bulls have their hearts broken this Valentines? Watch out for a bullish marubozu that closes above 1.6250 as a sign that bulls are pushing the pound higher. On the other hand, a bearish marubozu with a close below the 1.6000 handle may be a sign that the bears are taking control.

USD/CHF: Daily


Check out USD/CHF struttin’ a sexy pair of double bottoms on the daily chart! Siiizzlin’ eh? According to the School of Pipsology, a double bottom pattern is an indication of a trend reversal. So you may want to be on your toes for a strong break above the neckline at around .9750 as this could be a sign that USD/CHF will reach parity again! Just don’t get too excited. If resistance at that level holds, we may just see the pair tumble to its lows at around .9340.

EUR/USD: 4-hour


“Euro are you going down, down, in an earlier round..” Oops, pardon my singing. I just couldn’t help but break out into a Fall Out Boy tune after seeing what looks like a head and shoulders pattern on EUR/USD. Look at that! Doesn’t it make you want to sing too? Ha! Anyway, if the pair manages to convincingly close below the neckline support at around 1.3570, there’s a chance that the euro could go down swingin’ all the way to 1.3400. However, if there are enough buyers left chillin’ in the market, EUR/USD could skyrocket past 1.3850! With that said, I think it may be best for you to be patient and wait for confirmation before you bet your pips on this one.

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