Daily Chart Art – June 16, 2010

USDCHF: 1-hour

PoD Chart

It looks like the USDCHF pair is still trending lower, bouncing up and down inside a descending channel for an entire week. Would this channel continue to hold? The pair has just bounced from the bottom of the channel and appears to be aiming headed to the upper bound resistance. Drawing the Fibs on the recent downswing shows that the 61.8% retracement level is closely in line with an area of interest, which means that plenty of traders are probably watching out for that level.

USDJPY: 1-hour

PoD Chart

Bounce, bounce, bounce, bounce… Yes, that’s my favorite part in R.Kelly’s “Ignition” and it’s also what the USDJPY pair’s been up to lately! The pair seems to be moving within a range, with support near the 91.00 handle and resistance around 92.00. With the stochastics almost in the overbought area, the pair might be headed south until it finds support at the bottom of the range. But if it takes the northbound direction, it could hit a barrier and reverse its course upon reaching the top of the range.

EURGBP: 4-hour

PoD Chart

Lastly, lets end with a look at the EURGBP. After double dipping over the past couple of weeks, it looks like the pair is now headed back up. Look for potential resistance at the .8425 area, as it has been an area of interest in the past. Take note that that price level also happens to coincide with the 38.2% Fibonacci level. Watch out though if sellers jump back in, as they could bring price back down to the support level at .8211.