Daily Chart Art – July 17, 2009

EURUSD

PoD Chart

It looks like EURUSD is at a pivotal state right now. Looking at the four-hour chart, we can see that the pair is currently testing the falling trend line and resistance at 1.4150. It is hard to say whether we will see a breakout or a fake out given how the pair is in consolidation mode. In any case, if the pair does head upside, 1.4200 would probably be an obstacle EURUSD would face before going to 1.4300. Conversely, if both the descending trend line and horizontal resistance hold, the pairs next stop would be at 1.4000, a psychologically round and juicy number. As usual, happy trading and be careful of fake outs!

USDCHF

PoD Chart

Despite the strong one-directional moves for the week, the USD/CHF remained jailed in its range. The pair stayed resilient as it kept to its usual trading zone, with resistance at 1.0945 and support at 1.0650. It is currently trading near the bottom of the range as stochastics linger in oversold regions. It appears like the price is hesitating before moving any further but if it heads south, it could bounce up from support at 1.0650. If it heads north, resistance at 1.0945 is set in place.

EURJPY

PoD Chart

We finally saw a bit of retracement yesterday, as price fell a little bit after hitting a high at 133.40. The pair was pretty volatile, especially during the start of the US trading session as it jumped up and down. Still, it tested the recent uptrend line but merely bounced back up. The uptrend line has held pretty strongly lately, as it has been tested quite a few times but buyers still keep bringing price back up. Yesterday however, we saw some consolidation, with price registering lower highs. Could a symmetrical triangle be in the works? Could we be in for a break out? Be careful trading today and watch out for false breaks!