Daily Chart Art – August 2, 2010

USDCHF: Daily

PoD Chart

Wow! Look at that sexy lookin’ long-legged doji on the daily chart of USDCHF! Hmm, does this mean that the range is holding and Friday’s strong move down was simply a fake out? We’ll have to wait for today’s candle to close to find some confirmation! If we see price unable to close below Friday’s low, expect the pair’s trading range to hold.

EURJPY: 4-hour

PoD Chart

Is EURJPY about to swing higher? As you can see, EURJPY has formed a very clear bullish divergence as indicated by the “higher lows” in price and “lower lows” in stocahstics. The Fiboancci tool also hints that the pair’s retracement is now over, as price found significant support on the 50% level. If buying pressure continues, expect to see EURJPY to test former highs at 114.70.

USDJPY: 4-hour

PoD Chart

It looks like USDJPY is still stuck in a downtrend since that falling trend line on the 4-hour chart is holding up really well. However, the pair was unable to break below the floor around 86.00 to 86.35. With the stochastics crawling higher, upward price action could take place. The falling trend line could once again serve as resistance for the pair, which could retrace until the 61.8% Fibonacci level.