Judging from the falling trend line connecting the highs of the EURUSD pair, it looks like the downtrend is still intact. However, the pair is having a tough time breaking below that strong support level around the 1.2150 area. Well, that looks like a descending triangle formation right there! If euro bulls decide to charge, they could take the pair all the way up to the support turned resistance level at 1.2600. But if the euro bears continue to growl, they could push the pair down to the psychological 1.2000 handle.
After breaking above the neckline of the double bottom on the 4-hour chart, the AUDJPY pair rallied all the way up to the resistance near 78.00. It is currently lingering around that area, probably gathering enough energy to make a break for it. If it does break above 78.00, it could climb until the next resistance level in sight, which is around the 81.70 mark. On the other hand, if the resistance at 78.00 holds, the pair could fall back until the neckline support at 75.00.
Lastly, let's take another look at that EURAUD chart I posted up the other day. Remember how I said that it was starting to look like a bearish flag? Well, it looks like the flag just broke! After finding resistance around the 1.4730 area, the pair made a free fall and broke through the rising support line. With stochastics not yet in oversold territory, we could see the pair continue to drop before finding support at a previous low at 1.4440.
- Daily Chart Art - August 20, 2010 22:05 19 August 2010
- Daily Chart Art - November 17, 2009 19:26 16 November 2009
- Daily Chart Art - June 9, 2010 20:56 08 June 2010
- Daily Chart Art - April 13, 2010 20:15 12 April 2010
- Daily Chart Art - January 6, 2010 19:26 05 January 2010