Daily Chart Art – October 21, 2010

AUD/JPY: 4-hour

AUD/JPY chart

Well look who’s back… It’s our old buddy AUD/JPY! We’ve discussed this pair several times in the past because of the range it had been bouncing around in the past few weeks. But a couple of days ago, it finally broke out! Now it seems as though it wants to get back in… Make up your mind already! The range’s former support appears to be acting as a resistance level now, which may prompt sellers to take the pair back down below 79.00. On the other hand, if price continues to consolidate just below 80.00, it may be a sign that bulls are gathering strength to bring it back into the range.

EUR/CHF: 4-hour

AUD/JPY chart

Aww yeah! Another range to play with! For almost a month now, EUR/CHF has been moving up and down between 1.3500 and 1.3300. Now looks like a good time to get in on the action since price is approaching a major resistance level. It would probably be best to wait for signs of tiredness, such as bearish candlesticks, before going short and aiming for the bottom of the range. But in case you’re feeling bullish today, you should probably wait for a definitive break of resistance before going long.

CAD/JPY: Daily

AUD/JPY chart

Lastly, let’s take a look at Caddy. No I ain’t talking about the golfing one, I’m talking about the CAD/JPY! After topping out at 84.00 earlier last month, the pair has been on a steady decline and is now testing former lows at the 79.00 level. Will the support level hold? With Stochastic in oversold conditions, selling pressure might be dying down already. Still, I’d keep an eye out for a solid candle close below the 79.00 level as a sign that this pair could be headed for new lows.