Daily Chart Art – May 27, 2010

AUDUSD: 4-hour

PoD Chart

It looks like the break of the double bottom yesterday turned out to be a fake! As you can see, the 4-hour candle that tried to piece through the neckline resistance and close above it was quickly brought down by the Aussie bears. With a long-wicked candle right on the resistance and stochastics pointing down, it looks like the pair will continue to sink towards the former lows. If this happens, watch out for a triple bottom, which is a very strong reversal chart pattern!

NZDUSD: 1-hour

PoD Chart

Now let’s move on to my technical view on the Kiwi. It looks like the pair has been channeling lower. With price trading at the middle of the descending channel, the important level to watch is the 0.6600 handle. A candle close below this minor support will open the next psychological level at 0.6500, right at the bottom of the channel. If the pair fails to bust through 0.6600, a retest of the falling trend line is highly likely, especially with stochastics pointing up.

USDCAD: Daily

PoD Chart

Lastly, lets end with an inspection of the AUDUSD daily chart. The pair is currently having a hard time closing above a major resistance level at 1.0750. With signs of bearish divergence – price registering higher highs and stochastics showing lower highs – could we be in for a reversal? If sellers decide to come in with force, look for price to dip to former support levels at 1.0300. On the other hand, if buying pressure remains strong and we see a daily candle close above the 1.0750 mark, we could see a test of former highs at 1.1100!

  • winningpips

    hey buddy, on vaca?

    Aussie broke the neckline of 0.8350 and now trading at 0.85 level at Asian trading hour.

    Hope you bagged some nice pips :)

    I did not have time to monitor the market so I missed the opportunity!

    Have a great weekend!

  • winningpips

    hey buddy, on vaca?

    Aussie broke the neckline of 0.8350 and now trading at 0.85 level at Asian trading hour.

    Hope you bagged some nice pips :)

    I did not have time to monitor the market so I missed the opportunity!

    Have a great weekend!