Daily Chart Art – March 5, 2010

GBPUSD: 1-hour

PoD Chart

Let’s first take a peek at the Cable’s (GBPUSD) 1-hour time frame. Well, the pair has rallied all the way up to the 61.8% Fibonacci retracement level after sinking to a low of 1.4785 in March. Notice, however, that it had a hard time moving past this mark. Should the pair successfully break above it then reaching 1.5200 would be easy. On the flip side, it could revisit its monthly low if risk aversion persists.

EURUSD: 4-hour

PoD Chart

Check out the EURUSD 4-hour chart I posted above. Although the descending trend line connecting the highs of the pair has already been broken, the pair pulled back and now found support at this trend line. However, with the stochastics still crawling their way towards the oversold area, the pair could continue to fall back below the trend line. If drops further, it could find support around the 1.3455 level. On the other hand, if the pair bounces up, it could climb all the way up and encounter resistance at the psychological 1.3800 handle.

USDCAD: 1-Hour

PoD Chart

The Loonie is back on track, putting its name back on the radar as it made a nice run against the greenback for the most part of this week. As you can see, the USDCAD has started to fall after reaching a high of 1.0681 during the last week of February. Presently, however, it has found some support around the 1.0300 area. The bias remains to be on the downside, though, since the pair’s short term downtrend line is still intact. So, if the support at his area gives way then falling down to say 1.0200 is a possibility. On the other hand, the pair should take out the resistance at its downtrend line if it’s thinking of reaching 1.0400.