Daily Chart Art – January 6, 2011

AUD/USD: Daily

AUD/USD Chart

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!

AUDJPY: Daily

AUD/JPY Chart

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.

NZDUSD: Daily

NZD/USD Chart

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!