Daily Chart Art – March 14, 2011

USD/JPY: Daily

USD/JPY Chart

Is that a breakout or a fakeout? That’s the question that is probably on the minds of traders as USD/JPY seems to have found a lot of support below the rising trend line. As you can see, the lower shadow on today’s candle is very long, indicating strong buying interest. If you’re part of the bear camp, keep a close eye on the close of today’s candle! A close below the rising trend line would confirm the break and could mean more losses for the pair.

AUD/USD: 1-hour

AUD/USD Chart

Whoa! Did y’all see the Aussie bounce from 1.0000 like Chris Brown in his Yeah 3x music vid? Too bad AUD/USD fell short of trading past 1.0150 as resistance at the falling trend line held, and the pair forming a shooting star. I have a feeling that if there’s enough demand for the dollar, it may just be the bears’ turn to shout “Yeah, yeah, yeah!” all the way down to parity. But don’t fret Aussie bulls, not all hope is lost! Drawing a Fibonacci retracement tool, it seems like AUD/USD has formed a couple of dojis at the 38.2% Fib level. If support holds, we may just see AUD/USD give 1.0150 another shot!

EUR/USD: Weekly

EUR/USD Chart

Now let’s zoom out to the weekly chart of EUR/USD. All of Huck’s fan boys might have seen this setup before because she pointed out the falling trend line when she shorted EUR/USD. And you know what, despite the recent topsy-turvy price action, it looks like resistance at the trend line is still intact with last week’s candle closing as a hanging man just below it! Giving you another reason to join Huck in rooting for the dollar is the Stochastic which is already in the overbought territory. Don’t be too smitten by the euro though. Watch out for a strong break above 1.4000 as this could signal that EUR/USD will fly all the way to up to 1.5000.