Daily Chart Art – January 10, 2011

AUD/USD: Daily

AUD/USD Daily Chart

Will the Aussie fly high like a G6 or will it drop it like it’s hot? On AUD/USD’s daily chart, it looks like the rising trend line connecting the pair’s lows since August last year is still holding. In fact, AUD/USD seems to be finding support around the 50% retracement level. If the pair bounces from that area, it could climb back up to its recent high of 1.0257. On the other hand, if it breaks below the trend line, it could tumble down to the former resistance area around .9350.

EUR/USD: Daily

EUR/USD Daily Chart

Break it down like Degeneration X, son! Late last week, we saw a definitive break of the rising trend line on EUR/USD. And to start the week off, the pair has gapped down! It’s starting to look like euro bears aren’t done doin’ their thang. If you’re comfortable with momentum plays, you may want to get in on this strong bearish move. The next support level isn’t until 1.2650, so it seems like there’s still a lot of room for the pair to fall. Just be sure to do your multiple time frame analysis and check out shorter time frames for the best entry point!

GBP/USD: 1-hour

GBP/USD 1-Hour Chart

What’s it gonna be, GBP/USD? Up or down? As you can see, the pair has been trending down on the 1-hour chart. But right now, it looks like it’s about to rise and retest the trend line for the fifth time. Looking to side with the bears on this one? It might be safer to wait for confirmation from candlesticks in the area of 1.5570 before getting short. But if you feel the bulls are ready to charge back and break the trend line, then it would be best for you to wait for a bearish candlestick to close above the trend line so you don’t get faked out.