Daily Chart Art – October 22, 2010

EUR/USD: 4-hour

EUR/USD chart

First of, let’s start with a shot of EUR/USD! Is the pair in for a bit of rest? After making a run for the 1.400 handle, The pair appears to be trading in a descending channel on the 4-hour chart , and Stochastic is also taking off from the overbought region. The euro bulls and bears could keep their eyes on the 1.3700 handle as it has provided support to the previous low, and is also near the bottom of the channel. Will the pair reach the handle, or will it encounter an earlier support at 1.3900?

GBP/USD: Daily

GBP/USD chart

Who wants to place bets on this coin toss? GBP/USD is currently playing around the 50% Fib at the 1.5700 handle. Will it bounce back up the charts as Stochastic suggests? Then again, a potential double top seems to be forming as well. If the support level at 1.5700 fails to hold, we may see the pair drop all the way down to the neckline at 1.5365. Stay sharp on trading this one!

USD/CHF: 4-hour

USD/CHF chart

Lastly, before you make your way out to the club, make sure ya know what’s poppin’ on USD/CHF. It looks like a mighty fine inverse head and shoulders is forming on the 4-hour chart. If you’ve been going through the New School of Pipsology, you’d know that this signals a potential reversal of the recent downtrend. Look for a solid candle close above the neckline and the .9800 handle a sign that the bulls may make a run for parity. On the other hand, if resistance holds, we could see the pair dip and test lows around the recent shoulder at .9600.

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