Daily Chart Art – May 25, 2010

AUDJPY: 1-hour

PoD Chart

After that sharp dive from last week, the AUDJPY had to pause and catch its breath. For the past few days, it consolidated and formed an ascending triangle on the 1-hour chart. However, it seems that a breakdown has already occurred, which could mean that the pair is ready to resume its decline. With sellers taking the upper hand once again, the pair could fall until its previous week low of 71.89. But if the pair pulls back up again, it could climb and encounter resistance at the top of the triangle around 75.50.

EURJPY: 1-hour

PoD Chart

Is the EURJPY recovering from a volatility hangover? After all those strong moves last week, the EURJPY has been consolidating as of late, forming somewhat of a falling wedge. Is a breakout in the cards? We’re going to wait for the flop to see what direction the breakout will head. If we see the pair break to the top side, we could see them euro bulls up the ante and push price up to former highs at 114.40. On the other hand, sellers may go all in and we could seem them bring price down all the way to last week’s low at 109.50.
EURGBP: 4-hour

PoD Chart

Let’s end this cross pair party with a look at the EURGBP! It seems to me that the pair is now trading within a symmetrical triangle, as it is forming lower highs and higher lows. With price now chilling above the rising trendline support and bearish divergence forming, will we see the pair reverse? If the support fails to hold, we could see price drop and test the 2010 low at 0.8430!