Daily Chart Art – February 8, 2010

EURUSD: 4-Hour

PoD Chart

After the EURUSD’s sharp drop in price seen last week, it looks like it’s time for the a pair to correct itself. I say this because of two reasons: one, the pair has found support at 1.3600, a psycholigcally significant number and two, stochastics show that the pair deeply oversold. With that said, watch out for the pair to head towards the Fibonacci retracement levels before falling down, particularly the 61.8% level as it lines up nicely with a former major low. However, in the event that we see a 4-hour candle close below support at 1.3600 early, a move towards 1.3500 is likely.

NZDUSD: 4-Hour

PoD Chart

Is that a bearish flag on the Kiwi? It sure does look like one, as price has been bouncing around a tight 50-pip range for the past couple of candles. If a 4-hour candle manages to bust through topside and close above resistance at 0.6900, we would most probably see a retest of 0.7000. On the flip side, if a candle is able to close below 0.6850, the pair could drop to 0.6750 before finding support.

USDJPY: Daily

PoD Chart

Lastly, let’s end with a look at the USDJPY. The pair has been trending lower over the past couple of months, as can be seen by the long term falling trendline. With stochastic entering oversold conditions, we may see the pair bounce back higher. If it does, it could find resistance at the 50.0% Fibonacci retracement level, at around the 91.20 price level, which was an area of interest in the past. However, if selling pressure remains strong and we see a a daily candle close below the recent swing low, we may see the pair drop to as low as 85.00.

  • 1geniuz

    Kind of off topic, but what charting software do you use and what do you think of metatrader4? i didnt see it on your list under the tools link… thanks!!!

  • PipDiddy

    @1geniuz Hey there! I use xtick for my daily chart art updates! You can check it out here: link to xtick.com

  • 1geniuz

    Kind of off topic, but what charting software do you use and what do you think of metatrader4? i didnt see it on your list under the tools link… thanks!!!

  • PipDiddy

    @1geniuz Hey there! I use xtick for my daily chart art updates! You can check it out here: link to xtick.com