Daily Chart Art – March 7, 2011

USD/CHF: Daily

USD/CHF Chart

Last week, I offered you playaz a falling trend line on USD/CHF, but here’s another way to look at it. You can say that a range on the daily chart of USD/CHF has been broken and retested. Last Friday’s price action had the pair making another failed attempt to rise back within the range. But at the moment, with Stochastic heavily oversold, the market seems to be a bit hesitant in taking the pair further down. The safest way to play this is probably to wait until it busts out of consolidation. If and when it does, expect the pair to fall sharply as it creates new all-time lows!

AUD/USD: 4-hour

AUD/USD Chart

Y’all better watch this sucker as it approaches 1.0200! After the way the pair ended last week, I wouldn’t be surprised to see the pair retest this level. So far, all attempts to get above this 1.0200 have been shot down. But we can’t be sure it will hold again, especially with the ascending triangle on the daily providing a strong case for an upside breakout. The key here is to let candlesticks lead the way. If we see a bullish marubozu close above it, get ready for a strong bull run! But if we get dojis and reversal candlesticks, you might be better off siding with the bears.

EUR/JPY: Weekly

EUR/JPY Chart

Last but not least, I’ve got a bootylicious setup on the weekly chart of EUR/JPY! The pair has formed a long term double bottom, with price now testing the neckline resistance at 115.00. Stochastic does suggest overbought conditions, which means that buying momentum could be coming to an end. Watch out though, cause if we do see another bullish candle close above resistance, we could see the pair rise another 800 pips, which is equal to the height of the double bottom formation.