Daily Chart Art – February 2, 2011

USD/CHF: 1-hour

USD/CHF Chart

Firstly, let’s take a look at USD/CHF. The dollar sold-off like pancakes yesterday caused the pair to pierce through .9400, a major support level. With the presence of a bearish pennant, it looks like it is revving up for another down move! But with Stochastic at oversold territory, this could also be a sign that the bears are tired. Watch closely where price will breakout, as the break will determine whether the pair will go up or down!

AUDUSD: 4-hour

AUD/USD Chart

Are the Aussie bulls finally running out of steam? After barreling past parity yesterday, AUD/USD encountered resistance at the 1.0150 handle. It even formed an evening star-like formation on the 4-hour chart, and is now stalling below the resistance level. Stochastic is also luring the bears in the overbought area, so watch your charts closely to see if the bears can gnaw at the pair all the way to a possible support at parity.

CADJPY: 4-hour

CAD/JPY Chart

And finally, here’s a simple one for ya! CAD/JPY has been bouncing along a descending channel on the 4-hour chart, and it doesn’t look like it’s done playing just yet. The pair is bumping into a resistance around the 82.00 handle, which is right in the middle of the channel. Stochastic isn’t in the overbought region yet, so the bulls might still be able to push the pair to 83.00. Watch your charts closely though, as the bears might still dig their paws all the way to 81.00.