Daily Chart Art – July 9, 2010

AUDUSD: Daily

PoD Chart

Ever heard of the candlestick formation “three white soldiers“? If you haven’t, this is your chance to learn more about it! Three white soldiers is a reversal pattern that consists of three long-bodied bullish candlesticks with each candle closing significantly higher than the previous day. In this case, the pattern appeared right after price found support on the 61.8% Fibonacci retracement level, indicating that AUDUSD will be experiencing more gains, possibly towards former highs and beyond.

EURGBP: 1-hour

PoD Chart

Take a look at that rising channel on EURGBP’s 1-hour chart. The pair has been bouncing up and down inside that channel for almost a week now. Will it continue to hold? EURGBP seems to be aiming for the top of the channel but, with stochastics in the overbought region, it could slide back down again. Aside from that, the pair is showing higher highs but the stochastics are drawing lower highs. That’s a bearish divergence right there! With that, the pair could head all the way down to the bottom of the channel.

EURUSD: Daily

PoD Chart

After EURUSD steep rise up, it looks like it’s going to face some tough resistance soon. I say this because of two things. One, a hidden bearish divergence has formed on the daily as price is making “lower highs” while stochastics is making “higher highs”. And two, price is slowly creeping up the 50% Fib (1.2785), a level which a lot of traders watch.

  • Headmaster111

    After EURUSD steep rise up, it looks like it’s going to face some tough resistance soon. I say this because of two things. One, a hidden bearish divergence has formed on the daily as price is making “lower highs” while stochastics is making “lower highs”. And two, price is slowly creeping up the 50% Fib (1.2785), a level which a lot of traders watch.

    Hi,
    Stochastics is make higher highs not “lower highs” as you stated here.I believe this is a mistake.
    Headmaster.

  • Headmaster111

    After EURUSD steep rise up, it looks like it’s going to face some tough resistance soon. I say this because of two things. One, a hidden bearish divergence has formed on the daily as price is making “lower highs” while stochastics is making “lower highs”. And two, price is slowly creeping up the 50% Fib (1.2785), a level which a lot of traders watch.

    Hi,
    Stochastics is make higher highs not “lower highs” as you stated here.I believe this is a mistake.
    Headmaster.

  • BigPippin

    You are absolutely correct. Thanks.

  • BigPippin

    You are absolutely correct. Thanks.