Daily Chart Art – November 16, 2010

EUR/CAD: 4-hour

EUR/CAD Chart

Here’s one for all you J-Lo fans out there! EUR/CAD looks to be forming a double bottom formation on the 4-hour chart. You’ll notice that after the recent selloff, a doji formed right where the pair found support last week, an indication of a possible turn up. Siding with the euro bulls today? Look to take profit in the area of the neckline at around 1.3900. But as you know, there’s no such thing as a “sure thing” in trading. The bear camp may just take control once again and force the pair to dip to new lows.

EUR/CHF: Daily

EUR/CHF Chart

Next up, let’s hop on over to EUR/CHF. It appears to me that the pair could be forming an inverse head and shoulders formation on the daily chart. Pay attention to the 50.0% Fibonacci retracement level, as it has served as a strong support. Could this be the second shoulder? Stochastic has also just crossed over, hinting that buyers may just be around the corner. Look for a solid candle close above the 1.3500 handle as a sign that this pair could be headed higher. On the other hand, if sellers remain in control, we may see further support at the 61.8% Fib level at 1.3175, which happens to line up closely with the first shoulder of the formation.

AUD/USD: 4-hour

EUR/CAD Chart

Can’t get enough of trend lines? Well, you’re in luck! AUD/USD’s got just the thing for you! Over the last two months, we’ve witnessed the pair crawl higher and higher. Recently, it fell from parity and is now on course to retest the rising trend line. If you want to treat the trend as your friend, you may want to consider going long at around .9800, where it looks like price will meet the trend line. In that case, 1.000 would be a reasonable profit target. But if you think AUD/USD will continue falling, then look for candlesticks to close below the trend line before going short.