Daily Chart Art – March 30, 2011

USD/CAD: Daily

USD/CAD Chart

If I had a favorite channel, this one would probably be it! The falling channel on USD/CAD’s daily chart has been holding for almost five months now and it looks like the pair would be stuck in there for much longer. USD/CAD is currently in the middle of the channel, still deciding whether to test the top or the bottom. Stochastic is pointing down, which means that sellers could carry the pair until the .9600 handle near the bottom of the channel. But if buyers suddenly take over, they could push USD/CAD to the .9800 resistance at the top of the channel.

EUR/USD: 4-hour

EUR/USD Chart

Whoa! It looks like the fight for pips between bulls and bears is getting intense! After bouncing off the rising trend line which extends all the way back to January, the pair is now back up at 1.4120, just a hairsbreadth away from the falling trend line. Watch out for a convincing break above the resistance level as this could signal that EUR/USD is on its way to 1.4200. Take note though that if there aren’t enough bulls chillin’, we could see the pair test support at around 1.4050. Heck! It may even break below it!

GBP/USD: 4-hour

GBP/USD Chart

Remember the major support area on Cable that I pointed out last week? That’s where GBP/USD is kickin’ it like Adidas right now. If you’re planning to join the bull camp, you may want to keep your fingers crossed for a strong bullish candle above 1.6050 because this could mean that GBP/USD is on its way back up to 1.6200. Meanwhile, if you feel like waving the bear flag, be on your toes for a close below the most recent low at 1.5940 as the pair could tumble all the way down to 1.5830.