Daily Chart Art – July 27, 2009

NZDUSD: 4-hour

PoD Chart

A 240-minute chart of NZD/USD is shown above. The pair recently broke out from a double bottom formation and has now been on an uptrend ever since then. Currently, the price is trading just above the uptrend line and the 0.6550 mark. The 0.6550 appears to be a crucial support. Should the price close below this level then we might see the pair fall further until it finds support at the psychological 0.6500 mark. However, the pair has an upside bias since the uptrend is still intact. The next possible targets for the pair would be 0.6600, the previous week’s high, and the 0.6650.

USDCAD: Daily

PoD Chart

This will be a big week for the USDCAD as it faces a very significant road block around the 1.0800 region. This price level, in addition to being a psychological support level, served as tough resistance all the way back in early September. Sellers would be hard-pressed to break through as stochastics is also indicating that downward momentum is dying down and that the pair might be way oversold. If sellers do succeed in taking down 1.0800, potential support could be found at 1.0700 and 1.0600. On the flip side, if price fails to pierce through and bounces up, buyers could take the pair back to 1.1000.

USDJPY: 4-hour

PoD Chart

The USD/JPY is climbing to new highs as it trends higher on the 4-hour chart. Check out the price forming higher highs with the stochastic oscillator sketching lower highs. That’s a regular bearish divergence right there! Along with the stochastic giving the go-signal to slide down from the overbought area, it signals that the price is due to move lower – possibly until the 38.2% Fibonacci retracement level. This level coincides with the previous support area at 94.50, from which the pair could rebound. The pair could also slide as low as the 61.8% Fibonacci level, which is nearly in line with the psychologically significant 94.00 mark. If the pair breaks below both 94.50 and 94.00 handles, then a downtrend could be in the cards. If this happens, it could find support at the previous low of 91.74.