Daily Chart Art – August 12, 2010

USDJPY : 1-hour

PoD Chart\

If you like the thrill of being hit by the BOJ’s currency intervention then this chart is for you! The pair seems to have consolidated somewhere in the middle of the trend channel, but the weekly open price is serving as a good resistance level. It is currently on its way down, and stochastics is in the overbought zone, but there are also rumors of a currency intervention when the pair reaches 84.75. It’s time to get that adrenaline pumpin’!

GBPUSD: 4-hour

PoD Chart\

Is that a resistance-turned-support area I’m seeing on Cable? Oh, why yes it is! We could see buyers start jumping back in the major trend as the 61.8% Fibonacci retracement level is coming up. The 61.8% Fib, in addition to coinciding with the psychological 1.5500 area, lines up nicely with a previously broken resistance level. Remember, whenever price passes through resistance, that level becomes support. If price manages to hold above that level, we could see Cable start another bull run!

USDCAD: 4-hour

PoD Chart

Check out this breakout! After trading within a descending channel for the past couple of weeks, the pair finally broke the pattern and is now on its way up. Too bad my buddy stochastics is being a party pooper by being in the overbought zone. With price still trading below the 1.0500 psychological resistance level, the bulls are not out of the woods yet! Stay safe, folks!