Daily Chart Art – October 12, 2010

EUR/USD: 4-hour

EUR/USD 4-hour chart

EUR/USD is smokin’ with those sweet lookin’ double top on the 4-hour chart! Ah, it looks like resistance at the 1.4000 handle was too strong for buyers. So is it time for sellers to strut their swagger? Hmmm, you may want to hold on to your pips first. The inverted hammer which just formed at the 38.2% Fib and the bottom of the ascending channel, and a possible bullish divergence with the pair making higher lows and stochastic making lower lows, are hollering “Buy, buy, buy!”

GBP/USD: Daily

GBP/USD Daily chart

Whatup playa – is that another set of double top I see on GBP/USD? Looking at the daily chart, it sure does! The pair appears to have found some resistance at the 1.6000 handle, as it can’t seem to close above it. With stochastic just crossing over out of overbought conditions, we might see sellers bust a cap on all them buyers! If we see another bearish red candle, we may see the pair test former lows at 1.5350. On the other hand, if we see a solid candle close above 1.6000, it might be a sign that buying pressure is still strong and that this pair could be headed for former highs around 1.6440.

USD/JPY: Daily

USD/JPY Daily chart

Lastly, check out the 411 on the daily chart of USD/JPY y’all! My, that hammer at the 82.00 handle is siiizzlin’! It looks like buyers are in for treat today especially with stochastic being in the oversold turf and the lines having just crossed. But hold up! Putting up some Fibs on the pair, it looks like the pair could meet some resistance at the 83.00 handle where it has previously found support. If it does, USD/JPY could tumble back to 82.00 or even 81.00!