Daily Chart Art – August 3, 2010

EURGBP: 1-hour

PoD Chart

Holy smokes! Feast your eyes on that bullish pennant on the hourly chart of EURGBP! Does that mean we’ll see the pair continue on its way up? Hmm… I don’t know. This looks like a coin toss. Stochastics are on its way down and a bearish divergence seems to have formed. It’s probably best to wait and see which direction the pair will break before we act.

NZDUSD: Daily

PoD Chart

NZDUSD is finally at a crossroads! It’s facing strong resistance on the daily chart in the area of 73.50, a level it has tested thrice already. Will the fourth time be the charm? It just might be! It looks like the pair has got a bit of momentum on it judging by the higher lows it has created. But if it fails to break resistance, it could fall back to 71.50.

EURUSD: 1-hour

PoD Chart

Woah! That EURUSD rally is so strong that the pair broke above the resistance at 1.3090. After the breakout, the pair surged all the way up to a high of 1.3196, just a few pips shy of the psychological 1.3200 handle. The stochastics at the overbought area suggests that the pair’s rally is almost over but that bullish pennant formation implies that EURUSD could climb higher. If it breaks above the top of the pennant, the 1.3300 handle could be its next target. But if it fails to do so, it could tumble and find support at the former 1.3090 resistance.

  • HarryPilgrim

    Thanks for this, coincidentally you are looking at the same pairs as me.

    The NZD is used as a proxy for commodity prices isn’t it? There are some good charts of these at: http://www.indexmundi.com/commodities

    which show that the June’s appreciation of NZD/USD is unjustified by rising prices. They’ve been falling. Also the EUR/USD rally seems to be exhausting. Therefore I expect the resistance at .74 (or .7450) to hold and view this as a shorting opportunity. We’ll see whether I’m right over the next couple of days.

    I’m a bit of a novice at com-dols so comments are welcome!

    Thanks for the analysis, HP

  • HarryPilgrim

    Thanks for this, coincidentally you are looking at the same pairs as me.

    The NZD is used as a proxy for commodity prices isn’t it? There are some good charts of these at: http://www.indexmundi.com/commodities

    which show that the June’s appreciation of NZD/USD is unjustified by rising prices. They’ve been falling. Also the EUR/USD rally seems to be exhausting. Therefore I expect the resistance at .74 (or .7450) to hold and view this as a shorting opportunity. We’ll see whether I’m right over the next couple of days.

    I’m a bit of a novice at com-dols so comments are welcome!

    Thanks for the analysis, HP