Daily Chart Art – August 18, 2009

EURUSD: 1-hour

PoD Chart

… And the EURUSD falls for the second day in a row. After being tested a couple of times, minor support at 1.4100 finally broke down and gave in to sellers. Has 1.4100 now turned resistance? If this is the case, sellers could use it as a spring board to take the pair even lower. Still, 1.4000 pose quite a challenge as this is a key psychological price level. Conversely, if buyers take back control, the next serious resistance levels the pair faces would be at 1.4300 and 1.4450.

USDCHF: 4-hour

PoD Chart

Wow, that’s a nice symmetric triangle formation on the USD/CHF 4-hour chart! The pair hit the top of the triangle yesterday and is now making its way back down. The stochastic indicator has just made a crossover and it looks ready to climb down from the overbought area -and the price is expected to follow suit and drop down as well. But until where? Well, if the symmetric triangle holds, then the pair could bounce upon touching the bottom of the triangle. This rebound could happen right around the 1.0700 area, which is a psychologically significant level. The question is: Will the downward momentum be strong enough to shatter the support of the triangle? We’ll just have to wait and see!

GBPUSD: 1-hour

PoD Chart

The GBP/USD pair is now on a short term downtrend as can be seen in its 60-minute chart. Yesterday, the price pierced though the support at 1.6435 and 1.6400 and fell all the way down to 1.6275. Currently, it is retracing back up to 1.6450. This level may act as a resistance that can push the pair down to 1.6300 or at the previous day’s low again. On the other hand, 1.6400 may be its next stop if the pair manages to move past 1.6350.

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