Daily Chart Art – November 1, 2010

USD/CAD: 4-hour

USD/CAD Chart

Uh oh, it looks like the bears are at it again, testing the major support level at 1.0170. Will USD/CAD bulls be able to hold, or will they finally give in and crack under pressure? With the Stochastic showing that conditions are oversold and price unable to close below support, the bias is for a bounce higher. But do be careful though… price is exhibiting “lower highs”, which means that the bears are still in control.

NZD/USD: 4-hour

NZD/USD Chart

Boom goes the dynamite! Fresh off the weekend, NZD/USD decided to blast through resistance, gapping over the .7650 handle and forming a solid doji in the process. Where is the pair headed now? Who knows! If the .7650 handle continues to hold as support, it could mean that NZD/USD will soon be climbing north. On the other hand, track the pair south if its momentum carries it back below resistance.

EUR/GBP: Weekly

EUR/GBP Chart

And finally, here’s a long-term one for ya! That downtrend on the weekly chart of EUR/GBP is looking smoother than a baby’s bottom! If you’ve been looking for a good entry point for a short position, now might be the time as last week’s candlestick formed a bearish engulfing candlestick. At the same time, you’ll find the familiar setup of “higher highs” on Stochastic and “lower highs” on price–a bearish divergence! The recent low seems like a good profit target if you want to sell the pair. But if you’re looking to get bullish, it might be best to wait for a convincing cross of the .9000 psychological level before buying EUR/GBP.

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