Daily Chart Art – February 9, 2010

EURJPY: Daily

PoD Chart

Check out the EURJPY daily chart I posted above. Notice that the support level at the psychological 127.00 handle has been broken as the pair took a sharp dive down. After breaking below that level, the pair made a small attempt to land back above 127.00 but failed. That long red candle from a few days back suggests that the selling pressure is very high and that the pair could keep heading lower. However, the stochastics are currently in the oversold area, indicating that the sellers are running out of steam. The pair could pull back, possibly until the 38.2% Fibonacci retracement level, which lines up with the former support level. If the pair manages to land back above the 127.00 mark, it could go all the way up to retest its previous high at the 134.30 region.

AUDUSD: 1-Hour

PoD Chart

Now, let’s find out how the AUDUSD pair is doing. The descending trend line on the 1-hour chart seems to be holding up really well and the pair could be going for a retest soon. The stochastics are in the oversold area, suggesting that the pair could retrace. The pair could pull back until the 61.8% Fibonacci retracement level and retest the trend line. However, there seems to be a minor resistance level around the psychological 0.8700 handle, which lines up with the 38.2% Fibonacci level. If the pair is unable to move above the 0.8700 area, it could tumble down to its previous low of 0.8582.

NZDUSD: Daily

PoD Chart

Next is the NZDUSD on its daily chart. As you can see, the pair broke and fell below the 0.7000 support. Presently, it is consolidating just between 0.6800 and 0.6900. Since conditions are already oversold and they have been so for quite a while now, the pair could retrace back to 0.7000. Though if selling pressure continues to mount and the pair drops below 0.6800, 0.6700 would be its likely next support level.