Daily Chart Art – March 17, 2011

EUR/USD: Daily

EUR/USD Chart

First up on today’s roster is EUR/USD on the daily time frame. Aha! After the pair got rejected at the 1.4000 handle yesterday, it looks like it formed a pair of double top! All you cool cats who have gone through the School of Pipsology probably know that this is should tickle the bears’ fancy. And you know what, to make things even better for those in the bear camp is that regular bearish divergence that the pair is sporting! Don’t get too crazy shorting the pair yet though. Note that EUR/USD could bounce off support at the neckline (around 1.3800) and give 1.4000 another shot.

GBP/USD: 1-hour

GBP/USD Chart

For those of y’all who trade the cable, feast your eyes on this potential long-term setup. GBP/USD is currently sitting right on the 1.6000 major psychological handle, thinking of where to go next. Will it be a break or a bounce? Stochastic is already in the oversold area, suggesting that pound bears could use a break. If the bulls take over, they could push the pair up to the 1.6100 resistance. However, if today’s candle closes below 1.6000, that could count as a break and GBP/USD could tumble all the way down to the 1.5900 handle or lower!

AUD/USD: 4-hour

AUD/USD Chart

Finally, here’s AUD/USD on the 4-hour chart, lookin’ sexy with those Fib lines. It seems to me that we’re also looking at a regular bullish divergence with price making lower lows while Stochastic is forming higher lows. This could mean that the pair is on its way to retrace some of its downward move back to 61.8% Fibonacci retracement level before trading lower. That is, if resistance at the Fib level holds! Watch out for a strong break above 1.0000 as this could signal that AUD/USD is on it way back up to 1.0200!

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