Daily Chart Art – November 11, 2010

EUR/USD: 4-hour

EUR/USD Chart

You in the mood for a little range play? If so, look no further than EUR/USD! Taking a peek at candlesticks, you’ll notice that the strong bearish move to test support at 1.3700 was quickly countered by an equally strong bullish move. This suggest that sellers don’t have enough power to take the pair lower. Momentum seems to be siding with buyers as Stochastic appears to be signaling that price is headed up once again. The area of 1.4000 looks like a reasonable target if you’re feeling bullish. Conversely, if you want to go short, a break of support would be a good opportunity to sell.

NZD/USD: 4-hour

NZD/USD Chart

Did you see Happy Pip‘s new Kiwi trade? Well, if you didn’t, here’s the setup she’s looking at. The Kiwi’s recent rally seems to be losing steam, and it looks like NZD/USD is ready for some pullbacks. The pair just bounced from the 38.2% Fibonacci retracement level and is poised to test its previous highs around .7970. However, with dollar strength still in the cards, the pair could dip even lower, probably until the 61.8% Fib. Now, according to our School of Pipsology, support and resistance could come in the form of actual levels as well as zones. And what I’m seeing right now is a resistance-turned-support zone just around the 61.8% Fib. There’s also a rising trend line which coincides with that area, check it out!

EUR/GBP: 1-hour

NZD/USD Chart

Here’s something for you to keep an eye on! EUR/GBP recently dropped and broke out of its narrow range, but now it seems as though it may be rising back up. Will we see it bounce off the range’s support to continue moving down? The Fibonacci retracement levels look like good places to sell if you want to catch a pullback. Then again, euro bulls might just be eager enough to bring price back into the range. In any case, it would be best to wait for confirmation from candlesticks before taking action. Better to be safe than sorry, right?