Daily Chart Art – June 3, 2010

EURUSD: 4-hour

PoD Chart

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.

AUDJPY: 4-hour

PoD Chart

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.

EURAUD: 4-hour

PoD Chart

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.

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