Daily Chart Art – January 19, 2010

EURUSD: 1-Hour

PoD Chart

Hmmm, it looks like the EURUSD is attempting to retrace some of its losses. This upward move could be short-lived though as the 1.4450 region, an important area of interest, is coming up. Remember, when price passes through a support level, that level becomes resistance. In addition, as you can see from the one-hour chart above, 1.4450 nicely lines up with the 50% Fibonacci retracement level. With stochastics about to move in back to overbought territory, we could see sellers start jumping back in to take the pair lower. Watch out for another retest of the previous week’s low at 1.4335 if this happens.

AUDUSD: 4-hour

PoD Chart

Huck may have to wait a bit for her trade to get triggered – it looks like the AUDUSD pair is ranging or forming a triple top. The pair bounced from last week’s low at 0.9180 before bouncing back up. If AUD bulls remain in the arena, they could have their horns aimed at pushing through resistance at 0.9325. On the other hand, take note that a triple top formation is a bearish reversal pattern, so we could be in line for a break of the support. If price falls back to the neckline, we could see a breakout, with price falling all the way to 0.9000.

USDJPY: 4 -hour

PoD Chart

Lastly, let’s take a look at the USDJPY. It seems to me that a head and shoulders formation has formed on the 4-hour chart, with the neckline serving as a strong support lately. With stochastic showing oversold conditions, we may see the support line hold if buyers decide to come back to play and bring price back up to the recent swing high at 93.75. Now, if sellers decide that they wanna let their hair out and break the neckline, we could see price be pushed down all the way to 89.00.