Daily Chart Art – August 11, 2010

EURGBP : 1-hour

PoD Chart

Let’s kick off today’s update with a look at the action on EURGBP! Once again, the pair is finding support on the rising trend line. Stochastics are pointed up, signaling upward momentum. Should it bounce off the trend line for the fifth time, it could possibly climb to around .8340, where it found resistance in the past. Then again, if it breaks the trend line, it could drop to about .8275, a former support level. Let’s see what happens!

USDCHF: 4-hour

PoD Chart

Hah, it looks like that falling trend line on USDCHF is holding strong! As you can see, a shooting star reversal candlestick pattern could be found sitting sexily on the 1.0600 handle. With a bearish engulfing candlestick confirming the reversal and stochastics showing downward momentum, could we see a retest of former lows? For now, that seems to be the bias but be careful! If we see price close above the above 1.0600, it could mean that the bulls have taken control of the pair!

AUDJPY : 4-hour

PoD Chart

Yesterday, we saw AUDJPY drop like a rock and break its rising trendline. Could it be setting up for another dip? Right now, the pair is having another go at a former resistance-turned-support. At the same time, stochastics are well into oversold territory, giving a slight bullish bias. Will it rise to the occasion and climb to 79.00? Or will it continue to fall and nosedive to 75.80?