Daily Chart Art – June 17, 2010

AUDUSD: 1-hour

PoD Chart

Let’s kick off things by looking at one of the pairs that Happy Pip loves the most, the AUDUSD. The pair is ascending triangle on the 1-hour chart with resistance at .8660. This type of triangle is considered as a bullish continuation pattern, so we could be in line for an upside break. If buyers manage to push price above the resistance, we could see price head towards the .8720-.8750 area. On the other hand, if the rising trend line support breaks instead, a retest of .8500 is likely.

NZDUSD: 4-hour

PoD Chart

After breaking through the neckline of a double bottom formation, it appears that a bullish pennant is now forming on the NZDUSD. With this type of formation, it is likely that we’ll see a breakout. The only question that needs answering is to which direction! If the pair breaks to the top, we could see a test of the psychological .7100 handle. On the other hand, if we see a break to the down side, look for the pair to keep heading south all the way to the next major support level at .6850.

GBPJPY: 4-hour

PoD Chart

Lastly, let’s take a look at the GBPJPY. The pair had formed a symmetrical triangle over the past two weeks, and it looks like we’re seeing a breakout in the making. If sellers continue their dominating performance, they could bring price down all the way to former support at 133.00. Now, if buyers have recuperated and decided to bring their A-game, look for them to push price back up and attempt to break through resistance just below 136.00.