Daily Chart Art – December 10, 2010

CAD/JPY: 4-hour

CAD/JPY Chart

It looks like Caddy (yes, I just made that up) has been trading within an ascending channel. With price right smack in the middle of the channel, who knows where it could be headed! Take note though, that Stochastic is showing downward momentum, so we may see sellers continue to push the pair down. Look for a test of support at the bottom of the channel near 82.50. If Stochastic is in the oversold territory by then, buyers may just come back in force.

AUD/USD: 4-hour

AUD/USD Chart

Anyone interested in an inverse head and shoulders pattern? AUD/USD looks like it’s on its way to completing one. Price is slowly approaching resistance at .9960, the neckline of the formation. As the School of Pipsology teaches, this pattern is a trend reversal formation, so traders might be looking to play a breakout above the neckline. But you should know that in no way is a breakout guaranteed. Price might just bounce off resistance and dip back down below .9800, so it’s best to wait for confirmation from candlesticks before making your move.

EUR/CHF: Weekly

EUR/CHF Chart

I’d just like all you lovely ladies out there to know that I’m a long-term kind of guy. That being said, I took a look at the weekly chart of EUR/GBP and noticed the pair was on its way to retest all-time lows near 1.2800. If you’re feeling bullish, you may want to play a bounce off this level. But if you’re not a rebound-type of gal, then maybe you ought to look at shorting the pair and playing a breakout below this level. Either way, whether in love or in trading, it’s best to play safe and be protected. That means don’t forget your stop losses, kids!

3 comments

  1. HarryPilgrim

    Hi BP,

    That’s a Freudian slip with EUR/CHF isn’t it? There is a similar formation in progress on EUR/GBP with support at .8365.

    Cheers, HP.

    Reply

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