Daily Chart Art – January 28, 2010

EURJPY: 1-Hour

PoD Chart

Look at that falling trend line on the EURJPY 1-hour chart! The pair has been attempting to break above that trend line for almost an entire week and it seems ready to stage another retest soon. Right now, the pair seems to be encountering a minor resistance level around 126.30, which is just a few pips below the 38.2% Fibonacci retracement level. If it pierces through that resistance level, it could climb all the way up to the 61.8% retracement level, which intersects the trend line. However, if it breaks above the trend line, it could surge until the previous day high of 128.37.

AUDUSD: 1-Hour

PoD Chart

Here’s another falling trend line, this time on the AUDUSD 1-hour chart. The pair has been unsuccessful in its past attempts to break beyond the falling trend line. Could it break out this time? The stochastics are still climbing out of the oversold area and making their way up, suggesting that buyers still have a lot of steam to take the pair higher. The pair could reach the 61.8% Fibonacci retracement level before reversing back down. However, it could also break beyond the trend line and retest the former resistance at the 0.9080 to 0.9090 area.

GBPUSD: 4-Hour

PoD Chart

Now let’s check the 4-hour chart of the GBPUSD pair. As you can see, a nice symmetrical triangle appears to be forming. While the pair can break out either up or down, the chances of it sliding further is greater since it is coming off a short term downtrend. Its first level of support will be at last week’s low, which is around 1.6078, if it breaks down. Though, its downside target (computed by projecting the height of the pattern from the point of breakout) would be around 1.5950. But if luck gets in the way and the pair breaks to the upside, the pair can find itself back at 1.6400.