Daily Chart Art – February 22, 2010

USDCHF: Daily

PoD Chart

Wow, it looks like a shooting star has formed on the daily chart of the USDCHF! With stochastic indicating overbought conditions, we could see the pair finally begin its descent. If price falls, support may be found at around the 1.0500 price handle. Not only was this a former resistance point, but it also lines up with the 50.0% Fibonacci retracement level. The question is, will USDCHF bears get their wish? After all, buying pressure is strong and if it continues, we may just see the pair test for new highs at the 1.1000 price mark.

NZDUSD: 4-Hour

PoD Chart

It looks like the ascending channel the Kiwi has been trading on the last few weeks finally broke down last week. Notice how a four hour candle managed to bust through support and convincingly close below it. For now, watch out if price manages to find resistance at the broken rising trend line support, as this could be a possible chance for bears to start jumping in and take the pair lower. However, do take note that stochastics still isn’t at overbought territory yet, indicating that buyers could still have some gas left in them.

GBPUSD: 4-Hour

PoD Chart

Lastly, let’s end with the 4-hour chart of the GBPUSD. After breaking past a short term rising trend line last week, the pair looks headed for a retracement, especially with stochastic showing upward momentum as the pair is exiting oversold conditions. Could we see a retest at the intersection of the two trend lines? If resistance holds at around 1.5700, the pair may then continue its downward trek. On the other hand, if price action pierces through the falling trend line, we could see the pair test former highs around 1.6000.