Daily Chart Art – August 11, 2009

USDCHF

PoD Chart

It looks like the Swissy is safely back in the its usual range, with major support at 1.0640 and major resistance at 1.0940. After lingering outside the range for a bit, the pair made climbed back in after forming that long green candle. It seems to be slowly making its way towards the top of the range, from which it could drop back down. There also seems to be an area of interest around the 1.0770 area. This level previously served as support when the pair was moving around the upper half of the range. It then turned into a resistance level when the pair slid to the lower half of the range. Could it now serve as a minor support level if the pair reverses upon hitting the top of the range? Let’s wait and see!

GBPUSD

PoD Chart

The GBP/USD pair is now on a short term downtrend as can be seen from its one-hour chart. Yesterday, the price broke through the support at 1.6600 and 1.6500 very easily. The pair is now trading just below 1.6500, which has switched its role from a support to a resistance. If the pair is not able to retrace back above 1.6500 then most likely it will continue moving down until it finds some support at 1.6400 or at the previous month’s low of 1.6350. On the flip side, 1.6600 or the resistance at the falling trendline may be its next stop if it is able to power its way above 1.6500.

EURJPY

PoD Chart

After a strong rise last week, it seems that we are seeing a pullback on the EURJPY pair. The pair topped out after hitting 138.72 last week before dropping on yen strength over the past couple of days. Price action is approaching a rising uptrend line from last week, where it has bounced off 3 times already – can it hold for a 4th time? Take note that it is approaching psychological support at 137.00 as well. If it does bounce off the trend line, we may see some consolidation as it may encounter some resistance at 137.50, a former resistance area. This may lead us to a potential breakout scenario – price may then test previous highs and close in on 139.00, or it can break the trendline support and test further support down low at 136.00.