Daily Chart Art – August 24, 2010

USDCAD: Daily

PoD Chart

What a nice break we have got there! As you can see, USDCAD just managed to finally bust out of its descending triangle formation and make a new major high. Does this mean that the pair will experience more gains now that it has pierce through that falling trend line? That seems to be the bias currently, so look for a possible move towards the 1.0680-1.0700 resistance area.

EURJPY: Daily

PoD Chart

Aww yeah! It’s limbo time! EURJPY, how low can you go?! Right now, the pair seems to be facing support at a former low. But something tells me that if candlesticks start closing below 107.00, EURJPY could be headed all the way down to around 102.00. The last time it saw those levels was way back in 2001, when my boy Jay-Z released his hit “Izzo!” Hmm.. Then again, should it fail to break support and bounce up, I wouldn’t be surprised to see the pair end up in the area of 113.00.

USDJPY: 4-hour

PoD Chart

Does this setup look familiar to you? Well it should! USDJPY has been flirting with the 85.00 support level for the past couple of weeks now and has formed a descending triangle in the process. Now it looks like it’s headed for another retest. Will the pair create a new low and finally bust out of the triangle? Or will sellers chicken out and send it back up the charts? By the looks of it, the area of 85.70 seems like a likely destination if the pair fails to break support. So what’s it gonna be, USDJPY?!