Daily Chart Art – July 26, 2010

USDCHF: 4-hour

PoD Chart

First, let’s kick off this week with a look at USDCHF. It seems that a double bottom formation has formed, as the pair has found support at 1.0400. Keep an eye out on the neckline resistance at 1.0540. If we see a strong bullish candle close above this level, we may just see price break out to the top and test highs at 1.0670. If resistance holds however, we could see more range-like behavior and price could once again drop to 1.0400.

GBPJPY: 4-Hour

PoD Chart

Next, let’s move on over to GBPJPY. As you can see from 4-hour chart, the pair managed to maintain its range-bound movement as it popped up and rallied furiously when it found some major support at the 131.00 handle. With stochastics at overbought territory adn price approaching the 135.50-136.00 region, there is a likely chance that we see price drop back down again.

USDCAD: 1-hour

PoD Chart

Finally, here’s the 411 on USDCAD. It seems that pair has been consolidating into a descending triangle, as it has formed lower highs while finding support at 1.0350. This chart formation is normally a bearish pattern, so look for a break below 1.0350 as a sign that the pair could test former lows at 1.0280. On the other hand, we never know what might happen and we may just see the pair break higher. If that happens, buyers may just take the pair on a ride all the way up to former resistance at 1.0500.

2 comments

  1. sergeyrar

    hi

    about the USD/CHF I would suggest going short at this point,

    for the following reasons :

    1- 4H channel resistance
    2- 61.8 fibonacci retracement from 1.0650 high
    3- stochastic overbought

    Reply
  2. sergeyrar

    hi

    about the USD/CHF I would suggest going short at this point,

    for the following reasons :

    1- 4H channel resistance
    2- 61.8 fibonacci retracement from 1.0650 high
    3- stochastic overbought

    Reply

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