Daily Chart Art – August 27, 2010

USDCAD : Daily

PoD Chart

Well look what we have here! It seems like USDCAD is trapped in a range on the daily chart. Hah! Stochastics has been indicating overbuying and a doji recently formed at the top of the range, too! Are these signals that there aren’t enough buyers to bust the pair out of its range? Something tells me USDCAD may be destined south to around 1.0200 if it fails to break out. But I have a feeling it could head north to around 1.0850 if it succeeds in escaping.

NZDUSD: 1-hour

PoD Chart

Whoa! That setup on NZDUSD is looking mighty fine… Almost as fine as Queen Cleopiptra! As you can see, the pair is approaching a former support level which coincides with the 50% Fib. At the same time, stochastics just stepped into oversold territory. Is the pair due for a U-turn? If it decides to retrace its steps and head back up the charts, .7060 seems like a likely destination. Then again, it might just go straight down to the area of .7000. NZDUSD, where are you going?!

EURGBP: 1-hour

PoD Chart

A descending trend line connecting the pair’s highs and an ascending trend line connecting the pair’s lows… Why, that looks like a symmetrical triangle right there! Since the formation hasn’t completely materialized yet, the pair might continue to bounce up and down inside the triangle. But, for now, it looks like EURGBP could be headed lower since there’s a bearish divergence. See those higher highs of the stochastics and the lower highs of the price? If EURGBP slides, it could find support at the bottom of the triangle.

  • NSubramanian

    While stochstics at daily TF shows overbought the 4hr TF shows bullish movement. please comment which one to follow.

  • NSubramanian

    My question is regarding USDCAD.

  • NSubramanian

    While stochstics at daily TF shows overbought the 4hr TF shows bullish movement. please comment which one to follow.

  • NSubramanian

    My question is regarding USDCAD.