Daily Chart Art – August 6, 2010

NZDUSD: 4-hour

PoD Chart

No, your eyes aren’t playing tricks on you! After yesterday’s big drop, NZDUSD really IS finding support at the ascending trendline again! And will you look at that, stochastics are at the oversold region, too! Looks like the pair could be headed back up to test this week’s high in the area of .7350. But then again, if it manages to break the trendline, it might settle at around .7200, a resistance-turned-support level.

USDCAD: Daily

PoD Chart

My, oh my, it looks like that symmetrical triangle in the daily chart of USDCAD has been broken! Watch out though, as the yesterday’s price action resulted in a hammer. A hammer is normally seen as a reversal candle that comes at the end of a downtrend. With stochastics indicating oversold conditions, is it time for buyers to jump back in? If we see a bullish candle form today, we may see the pair rise up and test the former area of interest around 1.0280. On the other hand, if price makes new lows below 1.0100, it may be a sign that the pair is headed for parity.

USDJPY: 1-hour

PoD Chart

Will USDJPY give us a rally to end the week? It’s starting to look like it! Take a look at those long wicks forming on the 1-hr chart! It seems like the pair is having a hard time crossing the 61.8% Fib, which just so happens to coincide with a former support level. Stochastics have been in the oversold region for a while now, which could mean sellers may get tired soon and send the pair back up to yesterday’s highs. But who knows, they might just find enough energy to break support and push the pair down to around 85.35.

  • j4mp3r

    I would be very cautious on NZD/USD, on daily it shows a bearish three-drive pattern. Greetings

  • j4mp3r

    I would be very cautious on NZD/USD, on daily it shows a bearish three-drive pattern. Greetings