Daily Chart Art – March 22, 2011

NZD/USD: 4-hour

NZD/USD Chart

If you’ve been partying with the Kiwi bulls for the past couple of days, you may want to take a step back and sober up because it looks like NZD/USD is now testing resistance at the falling trend line. Stochastic, which is sporting a bearish divergence, could also be a sign that it’s the sellers’ turn to get their groove on. That is, if resistance at the falling trend line holds. Watch out for a strong break above .7350 because that could mean that buyers are gonna party like its 2012 all the way up to .7500!

EUR/CHF: 4-hour

EUR/CHF Chart

Also struttin’ a hidden bearish divergence is EUR/CHF on the 4-hour timeframe! See Stochastic making higher highs while price is making lower highs? Well, this could mean that support at the rising trend line has turned into resistance and may be too much for ’em buyers to handle! But don’t get too giddy rooting for the Swissy just yet. Who knows, if the pair closes convincingly above 1.2900, we may just see EUR/CHF rally up to 1.3020!

USD/CHF: 4-hour

USD/CHF Chart

Lastly, I’ve got a sweet potential breakout play on the 4-hour chart of USD/CHF. After dropping like bottles at the club last week, USD/CHF has consolidated over the past couple of days and has now formed a bearish pennant. Are we about to see a fresh set of all-time lows for this pair? Look for a break below .9900 as a sign that the bears are in control and headed for new lows. On the other hand, if the bulls decide that enough is enough, look for a topside break above .9100 as this could signal a stronger move up the chart.