Daily Chart Art – March 23, 2011

EUR/GBP: 4-hour

EUR/GBP Chart

Four… Not only is that the number of times Cyclopip has breakfast everyday, but that’s also the number of times EUR/GBP has tested its rising trend line and failed to break it! Will the fifth time be the charm? The pair is selling off quickly and if you take a look at other euro pairs, you’ll see the euro still has room to fall. But then again, Stochastic is already deep into oversold territory, so a turnaround may be waiting just around the corner. At this point in time, it’s best to play the waiting game. That means wait for candlestick confirmation before making your move!

EUR/USD: 4-hour

EUR/USD Chart

When there’s a trend, what’s one tool we can always rely on to help us find entry points? It starts with an “F” and ends with a “ibonacci!” As you can see from the 4-hour chart, EUR/USD has retraced some of its gains. With the Stochastic not yet at oversold territory, it looks like we could see the pair tick down lower, possibly to the 1.4000 region. If you’re bullish on the pair, the area between the 38.2% and 50.0% Fibonacci retracement levels could be a good entry point as price found significant resistance at area level before! Remember, whenever price passes through a resistance level, that level usually becomes support!

EUR/AUD: 1-hour

EUR/AUD Chart

Well color me green and call me Cyclopip! I do believe that’s a head and shoulders pattern in the making on EUR/AUD’s 1-hour chart! After peeking at around 1.4300, the pair turned down and now it looks poised to fall even lower. Once the neckline on the formation breaks, expect price to dip to around 1.3900. But until we get clearer signs from the market that bears are ready to take this pair lower (like overbought Stochastic or a bearish marubozu) you may want to wait on the sidelines.