Daily Chart Art – March 3, 2011

NZD/USD: 4-hour

NZD/USD 4-hour chart

Here’s an update on the NZD/USD 4-hour chart I posted earlier. For those of you who missed out the Kiwi’s dive yesterday, this could be your chance to catch another retracement. The descending channel on the 4-hour chart is still holding since the pair just bounced from the bottom and appears to be pulling back. In fact, a bullish divergence formed, which means that the pair could have a chance to make it to the top of the channel again. The 61.8% Fibonacci retracement level is close to the .7500 handle, which could act as resistance and push the pair back down. But who knows, we could be in for a breakout either way so make sure you stay on your toes!

EUR/USD: 1-hour

EUR/USD 1-hour chart

Is it me, or are the euro bulls taking a breather after the parade of green candles? The pair is slowly inching its way downwards on the 1-hour chart, and Stochastic also looks like it’s about to leave the overbought area. Look out for the 1.3800 handle though, as the level has supported the pair in the past, and is also right at the 61.8% Fib. The previous high near 1.3900 might be a good target if you’re going long on the pair, but the bears can also aim for the previous low near 1.3750.

USD/CAD: Daily

USD/CAD Daily Chart

For y’all who have been keeping tabs on USD/CAD’s descending channel on the daily chart, watch out for a potential resistance at the .9850 handle! Aside from the level being near the top of the channel, the area is also lining up nicely with the 61.8% Fib, as well a previous support for the pair. Stochastic is still hanging out in the oversold region, but stay sharp once it leaves the area!