Daily Chart Art – August 21, 2009

AUDUSD: 4-hour

PoD Chart

Pretty quiet day from the AUDUSD pair yesterday, as it traded within a pretty tight range. It seems the buyers are having problems bringing the pair up as price action is currently sitting at the .500 Fibonacci retracement level, while stochastic is showing overbought conditions. Will sellers dominate the market today? If they do, we may find some support at the .8200 price area, which has been holding the past week. Also, the uptrend line hasn’t been broken convincingly – will it continue to provide uptrend support? If buyers do find some power bars and gain enough energy to break resistance, we may see the pair shoot up and test new highs.

NZD/USD: Daily

PoD Chart

UP! The NZD/USD pair is back on track on its way up! Though, it is experiencing a little bit of consolidation as it finds a resistance at 0.6800. Still, chances are the pair will move higher since its uptrend line remains unbroken. Its next target would be the psychological 0.7000 mark if it can close above the resistance at 0.6800. If it cannot, then the pair may continue moving sideways between 1.6700 and 1.6600.

USDJPY: Daily

PoD Chart

USD/JPY seems to have gotten the hang of diving that the pair should consider taking it up as a sport! A downtrend line can be drawn connecting the descending highs of the pair. And if you look right at the bottom of the downtrend, you’d spot a symmetric triangle formation. With the price consolidating, there’s only two ways to go: The pair could either break below the bottom of the triangle and dive even deeper or it could emerge from the top surface of the triangle, take off its diving gear, and head back to shore. There seems to be an area of interest right around 94.50, which is the previous day high and a potential resistance level in case the pair floats up.

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