Daily Chart Art – November 10, 2010

GBP/USD: Daily

GBP/USD Chart

Rise and shine for that ascending trend line on Cable y’all! Well it looks like the pair has retraced some of its gains back to the 50.0% Fib and now it’s just flirting with the 1.6000 level where it has previously found resistance. But will the psychological handle be too hot for ‘em sellers to handle? Well, if GBP/USD finds support at the level, we may just see it end up back to its weekly highs at around 1.6270. If there are ‘nuf sellers to reprezent, GBP/USD could take a dip to the 61.8% Fib. But I don’t think I’ll bet my pips on the dollar until the pair breaks the trend line at around 1.5900.

USD/JPY: 4-hour

USD/JPY Chart

Now make a wish… because a shooting star candlestick formation has appeared on USD/JPY’s 4-hour chart. After staging a nice little rally yesterday, it looks like the bulls are having trouble piercing through major resistance around the 82.00 handle. Does this mean the pair has hit a ceiling? While a shooting star can mark a top, it can also fail from time to time. In this case, we can see that the move up was very fast, which means we could see another strong rally after a bit of consolidation. Keep a close eye on that 82.00 level, as a break could take USD/JPY all the way to 83.00.

AUD/USD: 1-hour

AUD/USD Chart

Lastly, let’s check out AUD/USD. After being stuck on a range for a few days, sellers were finally able to hustle the pair all the way down, down, down to parity! Sticking some Fibs on the pair, we see that buyers could find resistance somewhere around the 50.0% Fib level, where AUD/USD previously found support. But if there’s enough Aussie lovin’ to go around, we could see the pair kick it like Adidas back to the top of the range again. If not, there’s a good chance sellers could pin the pair to parity and even push it lower.

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