Daily Chart Art – June 11, 2010

AUDUSD: Daily

PoD Chart

Has the AUDUSD finally found a bum… err, a bottom?!? As you can see, the pair just formed a pretty sweet double bottom daily, which is usually considered as a bullish reversal chart pattern. If we see a daily candle close above the .8500 barrier, we could be in for a super rally towards the .9000 level. On the other hand, if price fails to breakout, a retest of previous lows at .8100 will be likely.

NZDUSD: 4-hour

PoD Chart

Well, it looks like the NZDUSD pair has formed double bottoms too! Does this mean that its downtrend is over? The pair has yet to break above the neckline resistance near .6900 before heading any higher. If it does, it could zoom all the way up to its former highs near 0.7300. But with the stochastics in the overbought area, sellers could take the upper hand and push the pair back to its recent lows at .6600.

USDCAD: 4-hour

PoD Chart

Uh oh, baby! The rising trend line connecting the lows of the USDCAD on the 4-hour chart just broke. This could mean that the pair could start heading lower from now on. However, the stochastics are already in the oversold area, which means that sellers are a bit exhausted. If the sellers take a break, the pair could still pull up and retest the broken trend line. If the selling pressure persists, the pair could fall until the next support level in sight, which is close to the psychological 1.0200 handle.