Daily Chart Art – April 13, 2010

USDCAD: 4-hour

PoD Chart

Let’s check out how the loonie is doing against the greenback. The pair is still in a strong downtrend and there appears to be a falling trend line forming on the USDCAD’s 4-hour chart. After dipping below the 1.0000 handle, the pair pulled back up to the 38.2% Fibonacci retracement level. It seems to be aiming for parity yet again and it could find support at the previous low of 0.9978. However, if buyers suddenly take the upper hand, the pair could break above the trend line until it encounters resistance near the 1.0300 mark.

USDJPY: 1-hour

PoD Chart

Now, let’s move on to the USDJPY 1-hour chart. There’s also a falling trend line connecting the highs of the price but the pair has been finding support at the previous resistance level at 92.90. The stochastics are currently in the oversold area, suggesting that the sellers are losing steam. Upward movement could take place next and the pair could climb to retest the trend line. If it breaks above the falling trend line, it could zoom up to its previous week high at 94.27. If the falling trend line holds, the pair could fall back until it finds support at 92.90.

GBPUSD: Daily

PoD Chart

Here’s an update of the GBPUSD chart that I drew yesterday. You see, after breaking out from a double bottom formation, the pair appears to have lost some juice. Presently, it is trading just above the pattern’s neckline. It could range for a while between the neckline and the resistance at 1.5540 before it either moves up or falls down. The pair could reach 1.5800 if it is able to move past 1.5540. But if it falls below the neckline again, it could find itself all the way back down to 1.5130.