Daily Chart Art – January 6, 2011

AUD/USD: Daily


Uh oh, it isn’t looking to good for the Aussie bulls! After it’s strong rally last week, AUD/USD is now in the midst of a massive free fall, losing more than 200 pips in the last three days. It is currently testing parity, which is a major support level. Will be able to hold or will we see a break?!? Given how fast the pair has dropped, the bias is for a break. But as I always say, nothing is certain, so wait for confirmation. In this case, look for a daily close below the 1.0000 level to confirm the break!



Something is up with the Aussie, and no, it has nothing to do with Australia’s water levels. AUD/JPY has been forming a rising wedge over the past couple of weeks, which, according to the best forex education in the fx hood, is a signal for a breakout in either direction. Stochastic is currently poised to go up, so the bulls could start watching for a resistance, possibly around the 85.00 handle. Meanwhile, the bears could also watch for a breakout to the pip deeps all the way to the support at 80.00.



Looks like the currency bulls and bears are in for a batte royale with this one! NZD/USD recently bounced off the 61.8% Fib on the daily chart, but a closer look also reveals a possible falling channel on the same time frame. Will the bulls hustle enough pip-muscle to push the pair to its previous high around .8000, or will the bears weigh push the price action to .7350? Stick around to find out!

Like what you've read?
Join over 45,000 other traders who get our newsletter. Tutorials, EAs, chart setups, free forex trading systems, and more!