Daily Chart Art – December 10, 2009

EURUSD: Daily

PoD Chart

Who’s seeing the bullish technical signals on the EURUSD daily? I am! Firstly, the pair has already bounced slightly from the rising resistance-turned-support trend line that I drew. Secondly, I’ve spotted a hidden bullish divergence, which is formed when price makes higher lows and the oscillator, the stochastics in this case, makes lower lows. Lastly, the most recent complete daily candle looks like a spinning top (although with a slightly larger than usual body), which is a sign of indecision between buyers and sellers. If the pair begins to move upwards, its next stop would be at 1.5000, the next major resistance level. However, if we see a candle close below the rising support line, look for a move towards 1.4500, a previous low.

NZDUSD: 4-hour

PoD Chart

Okay, now moving on to a pair I haven’t done in a while: the NZDUSD. It’s looking pretty interesting, as a double bottom chart formation has appeared on the 4-hour. Notice how price was able to find support at 0.7050 twice and then rallied towards the neckline resistance that I drew. If candles start closing above neckline, which is somewhere around the 0.7300 price region, the pair could stage a quick rally towards the falling trend line that I drew before finding any sort of seller support. On the flip side, if the neckline manages to remain intact, a retest of 0.7050 is likely.

USDJPY: 4-hour

PoD Chart

Lastly, let’s end with one of my staples, the USDJPY. The pair has made some big swings as of late, so I popped on the Fibonacci retracement tool to see whether there has been interest at any levels. It seems that price holding just around the .500 Fibonacci level right now. With stochastics indicating oversold conditions, there may not be much sellers left. We could see price retrace, with buyers coming in strong and looking at the previous swing high at 90.75 as their target. On the other hand, if USDJPY bears continue to claw away, we could see price break through support, possibly aiming for the swing low at around the 85.00 handle.

  • lowy

    Thumbs up big pippin

  • MonsterTrader

    Thanks for you analysis they help me a lot! either by confirming what i’m already seeing and adding conviction, or giving me a totally new perspective!

    ps. re euro – usdx has also posted a spinning top with a bearish body and is in overbought :)

  • lowy

    Thumbs up big pippin

  • MonsterTrader

    Thanks for you analysis they help me a lot! either by confirming what i’m already seeing and adding conviction, or giving me a totally new perspective!

    ps. re euro – usdx has also posted a spinning top with a bearish body and is in overbought :)

  • lowy

    Big Pipping thank you for your insight .
    I was wondering if you can do USD index too . I think there is a bit of redundancy doing different usd pairs while ignoring the major view.
    What do you think ?

  • BigPippin

    Doing a chart on the dollar index sounds like a great idea lowy! Maybe I’ll do that someday! :)

  • lowy

    Big Pipping thank you for your insight .
    I was wondering if you can do USD index too . I think there is a bit of redundancy doing different usd pairs while ignoring the major view.
    What do you think ?

  • lowy

    Thanks .
    Hopefully soon .

  • BigPippin

    Doing a chart on the dollar index sounds like a great idea lowy! Maybe I’ll do that someday! :)

  • lowy

    Thanks .
    Hopefully soon .