Daily Chart Art – February 4, 2011

USD/CAD: 4-hour

USD/CAD Chart

Bounce, bounce, bounce, bounce… USD/CAD must’ve been grooving to “Ignition” by R. Kelly for more than a month now. The pair has been bouncing up and down inside a range, with support around .9875 and resistance around 1.0025. Stochastic is making its way up from the oversold area, which means that buyers are taking control and could possibly take the pair back up to 1.0025. I think my friend Happy Pip is keeping her eyes on this range but, like her, I’d take a look at the upcoming economic data first before trading this pair!

EUR/AUD: Daily

EUR/AUD Chart

EUR/AUD formed the mother of all bearish candles yesterday, falling once again below the falling trend line. We should’ve seen that one coming! That trend line has been holding since late 2009! Check for yourselves! Now that things are back in order and the pair is back to its bearish ways, I suppose we can expect price to continue falling. At this pace, it seems like it’s only a matter of time before it reaches support at 1.3000 again. Who knows, it might even forge a new low!

AUD/USD: Daily

AUD/USD Chart

The Aussie has been on a tear lately! But how much longer can it keep this up? It’s fast approaching a tough resistance level in the area of 1.0200, and Stochastic is already signaling overbuying. Seems like a prime spot to sell, right? But before you all short this sucker, you might want to wait for reversal candlesticks to form to confirm that the Aussie’s rally is running out of steam. It’s better to be safe than sorry, ya heard?