Daily Chart Art – August 13, 2009

EURUSD: 4-hour

PoD Chart

What a fake out! The break of 1.4100 and ascending trendline support ended up false as the pair just bounced back and rallied furiously quickly after. The pair is currently trading a few pips above 1.4200 and is targeting the 1.4300 handle. From the four-hour chart, we can see that this price level has served as significant resistance a few weeks back. If 1.4300 fails to hold, The 1.4400 region would probably prove to be a tough egg to crack as this is the pair’s highest level this year. On the other hand, stochastic is about to hit overbought condition so we might see sellers take control again. If this is the case, support could be found at 1.4100 and 1.4000.

AUDUSD: 1-hour

PoD Chart

Surfs up mate! Looks like there’s a downtrend forming on the AUDUSD pair, as the pair is currently making lower highs. After dropping to below .8200 early yesterday, the pair bounced back up to as high at .8370, before hitting the downtrend line and dropping. Price action is currently in an area of interest around .8340, which was a previous resistance point turned support – it was last last week’s high, while also serving as last week’s low. Price action is also sitting near the .618 Fibonacci retracement level. With bearish divergence forming, we may see the pair drop later, and find support at .8200, right before yesterdays low. On the other hand, it could attempt to break the downtrend resistance. If price action successfully breaks through, it may find resistance at .8400, or further up at .8450 near the yearly highs.

GBPUSD: 1-hour

PoD Chart

It was a very wild day for the cable yesterday. The pair was pretty much on stand-by during the Asia session when it suddenly tripped during the opening of the Frankfurt market. The price broke below the range’s support. It then reversed at the 1.6400 mark and drove itself all the way up to 1.6550. After hitting a resistance at 1.6550, the pair fell all the way down to the range’s support for a moment. The buyers, however, were quick on their feet as they managed to push the pair back above 1.6500 once again. 1.6500 now acts as a support and the pair is just trading just above it. 1.6550 is not too far away and the price can easily reach that area. If, however, the price falls below the current support, it may drop back to 1.6450 or down to the bottom of the range.

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