Daily Chart Art – June 4, 2010

NZDUSD: 4-hour

PoD Chart

Oh sweet, it looks like the Kiwi is about to breakout! As you can see, a rising wedge formation has formed on the 4-hour chart, which is hinting at a possible sustained move down. If we see a candle close break through the rising trend line and close below the .6800 handle, the next major support levels at .6700 and .6600 will be open for the taking for the bears. Conversely, if the rising trend line holds, expect the pair to retest resistance at .6900.

GBPUSD: 4-hour

PoD Chart

Yeah brotha – looks like that GBPUSD is channelin’ up this week! Price is now chillin’ above the 1.4600 handle, after testing former resistance turned support at that price area. With price just above the rising support line, we could see the price rise back once again before finding resistance just below the 1.4900 mark. On the other hand, if support fails to hold, we could price take a dip on the deep end and fall to 1.4500.

EURJPY: 4-hour

PoD Chart

Last but not least, lemme take a look at one of Cyclopip’s favorite pairs, the EURJPY. It looks like the EURJPY has also formed an ascending channel. After forming a doji at the top of the channel, the pair dropped. With stochastics still showing downward momentum, it could continue to do so until finding support at the bottom of the channel at 111.00.

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