Daily Chart Art – January 26, 2011

NZD/USD: 4-hour

NZD/USD 4-hour Chart

I know how y’all love them simple setups, so here’s one on the Kiwi! NZD/USD looks to have consolidated recently and is trading within a descending channel. Currently, price is right smack in the middle of the channel, but is slowly creeping up. If buying pressure remains strong, we could see the pair test the top of the channel around .7750. On the other hand, Stochastic is showing overbought conditions, which means sellers may jump in like a bunch of hooligans and send the pair crashing down to .7500!

USD/CAD: 4-hour

USD/CAD 4-hour Chart

Here’s another comdoll setup for ya! Once again, USD/CAD is at a crossroads, testing parity for the nth time this month. Will the bulls finally make a run for it today? That depends on whether they can break the neckline of what seems to be an inverse head and shoulders formation. If candlesticks begin to close above this area, it could be a sign that buyers are ready to push the pair higher, possibly back up to 1.0200. But if bearish candlesticks start to appear, be careful! It might mean that it’s time for the pair to head back down.

EUR/USD: Daily

EUR/USD Daily Chart

Anyone up to play a break and retest? If you whip out the daily chart of EUR/USD, you’ll see that price has fallen below a former rising trend line and has tested it twice since. Will it hold as resistance once again? Stochastic seems to be favoring euro bears. It’s waaaaaay into overbought territory! Ready to sell? Hold your horses! It’s always best to wait for confirmation from candlesticks before acting, especially if you’re going against the trend.

  • Greenback500

    Hi Piping,
    I guess you did not see the sweet head and shoulders on the AUDUSD 4hrs chart.Check it out!!!

    Greetings.