Daily Chart Art – April 7, 2010

EURUSD: 1-Hour

PoD Chart

Let’s start off with the EURUSD 1-hour chart. There appears to be a sketchy head and shoulders formation right at the top of the pair’s recent uptrend. Does this signal that the pair could go downhill from now? The pair made a strong break of the neckline lately but it seems that the sellers are running out of juice. This could allow the pair to pull back up and possibly retrace until the 61.8% Fibonacci retracement level, which is almost in line with the broken neckline. The pair could then tumble down and find support at yesterday’s low of 1.3355.

USDCHF: 4-Hour

PoD Chart

Now, the USDCHF 4-hour chart is a pretty interesting one. On the one hand, there’s a falling trend line connecting the tops of the price, indicating that the pair’s downtrend could continue. The stochastics are in the overbought area, suggesting that downward price action could resume. On the other hand, I spotted that double bottom formation, which could signal that the pair’s downtrend is over. Still, the pair has yet to break above the neckline of the formation around 1.0730 and the trend line before heading any higher. Otherwise, the resistance at the trend line could send the pair tumbling back to the previous lows near the psychological 1.0500 handle.

USDCAD: 4-Hour

PoD Chart

Here’s another look at the USDCAD chart that I drew yesterday. Before, we asked if the Loonie was gonna reach parity with dollar. Now, we got the answer as the USDCAD briefly touched the magic 1.0000 handle and even marked a new 20-month low of 0.9988. Notice that the pair continued to slide after breaking down from an ascending channel. With stochastics in the oversold area, the pair could correct for awhile and reach the previous support at 1.0070 or the resistance at 1.0131. But if and when the pair breaks below 1.0000, it could fall until it hits minor support at 0.9950.