Daily Chart Art – July 8, 2010

GBPUSD: 1-hour

PoD Chart

It looks like we’ve got a couple of new developments on GBPUSD. For one, resistance at last week’s high held for the second time yesterday, rejecting GBPUSD’s upside rally. This means that GBPUSD is now in a range, with major support at 1.5080 and resistance at 1.5220. Since the pair was unable to close above 1.5220 and stochastics is showing that conditions are overbought, does this mean we will see GBPUSD drop soon? To confirm the bearish move, look for a candle close below the Asian session lows.

AUDJPY: 1-hour

PoD Chart

Here’s an update of that AUDJPY chart I showed you earlier this week. It looks like the pair finally broke past the neckline of the double bottom! If it continues its bullish run, we could see the pair rise all the way up to the 77.00 handle before finding any resistance. On the other hand, with stochastics showing overbought conditions, we could see a pull back. Look for support at 75.10, the former neckline, which seems to be a strong area of interest.

NZDUSD: Daily

PoD Chart

Finally! After consolidating for the past week right above the 50.0% Fibonacci retracement level, the pair has finally broken out of its range and formed a bullish green candle yesterday. Is this a sign of another strong rise? With stochastics just crossing over, buyers may have the momentum! We could see buying pressure push the pair higher and test the recent swing high at 71.60. If we see a candle close above this level, the pair may rise all the way up to test the yearly high at .7324.

  • AussiePiP

    GBP/USD
    Can you plese explain “To confirm the bearish move, look for a candle close below the Asian session lows. AUDJPY: 1-hour”. How should I compare those to pairs?
    btw, great blog!

  • BigPippin

    For GBPUSD, it just means that the chance of the pair hitting the bottom of the range rises significantly when a 1-hour candle close below the Asian session lows :)

  • AussiePiP

    GBP/USD
    Can you plese explain “To confirm the bearish move, look for a candle close below the Asian session lows. AUDJPY: 1-hour”. How should I compare those to pairs?
    btw, great blog!

  • BigPippin

    For GBPUSD, it just means that the chance of the pair hitting the bottom of the range rises significantly when a 1-hour candle close below the Asian session lows :)