Daily Chart Art – February 14, 2011

USD/CAD: 4-hour

USD/CAD Chart

Support comin’ up! Y’all who like to trade USD/CAD better get off your seats ’cause the pair is approaching a critical zone! It’s currently less that 20 pips away from support at .9850 and Stochastic is already deeply oversold. The close of a bearish marubozu below support may signal further bearishness for the pair. On the other hand, reversal candlesticks in this area may indicate a strong bounce. If that’s the case, look for the pair to retest parity again. We all know how Loonie traders love to trade around this level!

NZD/USD: 4-hour

NZD/USD Chart

Who’s up for another comdoll setup? I know Happy Pip is! Right now NZD/USD is knockin’ on the door of a resistance-turned-support level at around .7560. The question is, will it be rejected or will it bust through? There seems to be a lot of bearishness for this pair so you may want to consider selling it in case support breaks down. Alternatively, you can opt to go long and aim for resistance at .7800 in the event bullish candlesticks form. But whatever you decide to do, be sure to practice smart risk management!

GBP/USD: 4-hour

GBP/USD Chart

Uh oh, it looks like price finally broke out of that descending triangle! With support at 1.6050 finally taken out, does it mean that the level will now become resistance? Selling seems to be the name of the game for the pair, as price is staying convincingly below support. For now, the bias is for the bears to take the pair to the next psychological support at 1.5900.