Daily Chart Art – May 5, 2010

AUDJPY: 4-hour

PoD Chart

Spotted – a new rising trend line forming on the AUDJPY 4-hour chart. From the looks of it, buyers are starting to jump in again, as the psychologically significant 86.00 handle is holding strong. Still, given the strong down move yesterday, there is some doubt lingering in my mind whether support would remain intact or not. I’d keep a close eye on those candlesticks if I were you! If we were to see a four-hour candle close below the rising trend line, it would be a strong sign that sellers are in control and that a move towards the previous low at 85.00 is highly probable.

GBPUSD: 4-hour

PoD Chart

Now that the GBPUSD’s treading a very important support level, what’s next for the pair? Judging from the oversold stochastics and the how the GBPUSD is currently finding buyers at this level, we could see the pair do a “soft bounce” and retrace back to the 1.5200 handle before sellers jump in again. Still, as we all know, nothing is really certain in the foreign exchange market so watch out for a possible break of that support! If that happens, the pair could fall towards 1.5000 before finding some buyers. Keep those money management rules in check!

EURUSD: Daily

PoD Chart

Yowza! The EURUSD just keeps going LOWER and LOWER! Even though the pair gapped up to start the week, sellers just thought to themselves, “Aha, another opportunity for me to sell the euro at a better price!”… Which is exactly what they did! Notice the bearish engulfing candle, followed by another big red candle the following day? Now, stochastics are showing oversold conditions, so we may see a small pullback. If selling pressure remains strong however, sellers may be looking to push price down to major support levels at 1.2900 and 1.2520.