Daily Chart Art – February 23, 2011

EUR/CHF: Daily

EUR/CHF Chart

Oh yeah baby, looks like that evening star formation panned out on EUR/CHF! After forming that sweet candlestick formation, the pair has been on a free fall, and is now trading just above the 1.2800 handle! Watch out though, cause I ain’t too sure how much longer the selling pressure can last. First, Stochastic is now entering oversold territory. Second, the pair could find support at 1.2800 or at 1.2700, which line up at the 50.0% and 61.8% Fib levels! In addition, these were also former areas of interest in the past! Then again, that is one bad ass bearish marubozu candle! If we see another one, it might be a sign that EUR/CHF could head all the way back down to 1.2450!

AUD/JPY: 4-hour

AUD/JPY Chart

Whoa! Did you see the Aussie it drop like it’s hot? AUD/JPY was knocked down by 130 pips yesterday! The pair is popping a few green candles on the 4-hour chart though, which might signal a bit of retracement. The 83.50 handle looks mighty fine for a short entry, especially since it’s lined up with the 50% Fibonacci retraement level and a former support and resistance area. Besides, the pair has still has room to rise with Stochastic hanging out in the oversold region. The 82.50 level looks like a good target for y’all bears, but watch out, cause if the buyers decide to bring their A-game, they could take the pair all the way back up to the 84.50 handle.

NZD/USD: 4-hour

NZD/USD Chart

Look what’s sliding down the charts! NZD/USD took a pretty big hit yesterday, with the pair sharply falling to the bottom of a descending channel on the 4-hour chart. The pair has been pretty consistent with its Stochastic signals in the past, so the oversold signal that recently popped up just might push the pair back to the top of the channel. Of course, that hammer-looking candle at the bottom doesn’t hurt either. Watch this pair closely and see if the bulls can boost the pair all the way to .7600!