Daily Chart Art – October 13, 2010

EUR/CHF: Daily

EUR/CHF Daily Chart

Sweet like sugar, baby! Get a load of that setup on EUR/CHF! Price seems to be finding resistance on a falling trend line which just so happens to intersect with the 61.8% Fib level. And if you set your eyes on the Stochastic, you’ll see that momentum seems to be turning in favor of sellers. By the looks of it, the pair could be headed back down to 1.2800. But should candlesticks start closing above the trend line, it could be a sign that buyers are willing to take the pair back up to the area of 1.3900.

GBP/USD: 4-hour

GBP/USD 4-hour Chart

It appears that Cable is about to approach another major support level at the 1.5700-1.5730 region. Will we see another bounce, or will price break out to the downside this time? With Stochastic dancing around the oversold territory, it seems like the bias is for support to hold… If you’re part of the bull camp, look for reversal-type candlestick patterns around that area for confirmation. On the flip side, if you’re siding with the bears, a convincing 4-hour candle close below 1.5700 can serve as your “go-ahead” signal to go short.

EUR/GBP: 4-hour

EUR/GBP 4-hour Chart

Yo dawg, how much higher can EUR/GBP go?! As you can see, it has been stuck in a rising channel for a while now. Just yesterday, it smashed through .8800 to forge a new high. Will it climb even higher to test the channel’s resistance at the .8900 level? Well if it retests and fails to break through, it may fall back to .8800. But if it succeeds in busting out, its next stop could be in the area of .9000.