Daily Chart Art – November 23, 2010

EUR/USD: 4-hour

EUR/USD Chart

And EUR/USD drops like a rock! This makes me wonder, was the move up we saw late last week simply a… retracement? With the 38.2% Fibonacci retracement level holding and the overall downward trend intact, the bears could continue to push price lower for a retest of support around the 1.3500 region. Be very careful on pulling the trigger too early though. Stochastic show that the pair is nearing oversold territory, which means EUR/USD bears could be running out of steam!

GBP/JPY: 4-hour

GBP/JPY Chart

Just like Nicki Minaj’s debut album, Pink Friday, it looks like GBP/JPY is also out! Out of the ascending channel it has been trading in since late October, that is. If this is an indication that the uptrend is over, there’s a good chance that we could see the pair end back down at the 132.00 handle. However, Stochastic being in the oversold territory and that newly-formed inverted hammer could be signs that buyers still ain’t done rockin’ their thang. GBP/JPY could retrace some of its losses back to the 38.2% Fib and give the bottom of the channel a shot. So watch out for a convincing break above 132.25 because Guppy may just resume its uptrend.

EUR/GBP: 4-hour

EUR/GBP Chart

Bears are in the house yo! After the pair found resistance near .8600, EUR/GBP traded lower to retrace its gains all the way to the 61.8% Fib. Now it looks like its just kickin’ it like Adidas at .8530 which used to be resistance level. If what we’re seeing is indeed a retracement, buyers could take control of the pair and hustle it all the way back up to the week open price. But note that Stochastic hasn’t hit the oversold region yet and this could mean that the bears could knockout EUR/GBP down to .8490.