Daily Chart Art – August 23, 2010

EURUSD: 1-hour

PoD Chart

It looks like EURUSD is sportin’ a new bling bling! Is that a bearish pennant I see? Also, it seems that bearish divergence may be starting to form. Still, I wouldn’t put my rims on the line just yet! The pair seems to be testing support at 1.2700. But the psychological handle maybe too much for sellers to break through! Look for a solid candle close below the recent lows as a sign that the pair is breaking lower.

USDCHF: 1-hour

PoD Chart

Check out USDCHF y’all! Doesn’t it look snappy with those Fibs? It looks like there could be a retracement in the works after the pair seemed to have found resistance at the 50% Fibonacci level. Then again, stochastics suggests that the buyers may have the upper hand as there appears to be possible bullish divergence forming. Uh oh! If the pair trades below the resistance turned support at the 38.2% Fib, it may be a signal that selling pressure is kickin’ back in. But if stochastics turn and cross on the oversold territory, confirming that bullish divergence, then we may just see buyers jump back in.

EURCHF: Daily

PoD Chart

Last but not least, let’s look at the EURCHF cross pair. It looks like the franc has been taking the euro to school, as EURCHF is now approaching the all-time lows established earlier this year. Will the pair find support at 1.3075 before rising back up? After all, stochastics is indicating severely oversold conditions. We may just see bounce from the support level! Then again, if selling pressure remains strong, who knows where this pair could be headed!