Daily Chart Art – February 7, 2011

AUD/USD: Daily

AUD/USD Chart

Here’s an update on the AUD/USD chart I posted last week. Remember when I mentioned that resistance at 1.0200 could hold? Well, it looks like it did! A spinning top even formed right on that major psychological handle, hinting that there was a bit of a standoff between buyers and sellers. Since stochastic is in the overbought area right now, it hints that buyers are getting exhausted and that sellers are about to take over. If they do, they could take the pair back to parity or even lower!

GBP/USD: 4-hour

GBP/USD Chart

Here’s a Fib play for you! After encountering resistance near the 1.6300 handle, GBP/USD is stalling near the 38.2% Fib on the 4-hour chart. The oversold Stochastic signal and rising trendline are both pointing to more partying for the pound bulls, but you’ll never know with them currency bears! Keep your eyes on the 1.6300 handle, will ya? It has been an important resistance level for the pair, so the bears might also be waiting for a bit of profit-taking at that level.

USD/CHF: 4-hour

USD/CHF Chart

Looks like USD/CHF broke out of its descending channel! A few candles ago the pair sported a huge green candle that broke the resistance of a channel on the 4-hour chart. Will resistance turn into support? Stochastic is signaling that the bears might still pounce and even drag the pair to .9300, but if you’re one of them optimists, then you might want to watch at the .9700 handle!