Daily Chart Art – February 15, 2010

USDCAD: Daily

PoD Chart

Are those signs of reversal I see on the USDCAD daily? Firstly, a long-legged doji has formed right on the second test of the falling broken-resistance-turned-support trend line. Secondly, price is just sitting right on the 50% Fibonacci retracement level. Lastly, stochastics indicate that the pair is oversold. Given these, I’d keep my eyes peeled for a possible reversal. If buyers come out kicking and bust through the previous day’s high, they could push price to former highs at 1.0780. On the other hand, if a daily candle manages to close below the falling trend line, the pair would most likely head to the 61.8% Fibonacci retracement level before finding any kind of buyer support.

AUDJPY: 4-Hour

PoD Chart

Second on deck is the 4-hour time frame of the AUDJPY. The pair is currently riding a short term uptrend after marking its monthly low at 76.19. Notice also that it is starting to consolidate into an ascending triangle. On a higher scale, its recent up move, however, appears to be just a rally. If this is so then the pair could turn down and possibly head back to its monthly low again. On the other hand, the pair could reach the 50% Fib mark should it break above the ascending triangle.

NZDUSD: 4-Hour

PoD Chart

Next is the NZDUSD on its 4-hour chart. As you can see, the pair has gone back to the 61.8% Fibonacci retracement level that I drew after falling just above 0.6800. Presently, the pair is trading between 0.7000 and 0.6900. The chances of it moving lower, however, are greater since its overall downtrend has not turned yet. We could see the pair back down at its monthly low if the short term support at 0.6900 gets broken. On the flip side, the pair could reach the swing high at 0.7151 if it moves past the 61.8% Fib.