Daily Chart Art – April 15, 2010

EURUSD: 4-hour

PoD Chart

Check out the price action on the EURUSD 4-hour chart! The pair leaped above the neckline of those double bottoms but its rally stopped short at the 1.3670 area. The pair has been trying to bust through this level for almost a week now and it could succeed. If it does, it could keep climbing higher until it encounters psychological resistance at 1.3800. However, if the pair is unable to break above the 1.3670 level, it could fall back and retest the support level at 1.3550, which is near the neckline of the double bottoms.

NZDUSD: 4-hour

PoD Chart

Next is the NZDUSD pair on its 4-hour chart. As you can see, the pair corrected back to 0.7100 after reaching a new 3-month high of 0.7195. Interestingly, 0.7100 happens to fall in line with the 50% Fibonacci retracement level that I drew. A bullish divergence is also present which suggests an upturn in prices. The pair could trade for awhile between the 3-month high and 0.7100 since the stochastics is already in the overbought area. If it’s able to move past 0.7195 and 0.7200, it could easily reach 0.7250.

USDCAD: 4-hour

PoD Chart

Good bye dollar parity! The USDCAD finally broke below the magical 1.0000 hurdle when it broke down from a symmetrical triangle formation. The pair tried to rally after breaking down but its upward move was halted by the 38.2% Fibonacci level. The pair could range for awhile between the 38.2% Fib and 0.9954 before making a downward swing. Its target, which is calculated by projecting the height of the triangle from the point of breakout, is around 0.9900.