Daily Chart Art – October 23, 2009

EURJPY: Daily

PoD Chart

The EURJPY pair has been on a tear ever since it bounced from the ascending trend line support last week. It seems, however, buyers are facing a significant roadblock not too far away at 140.00. There could be a lot of selling pressures in this area because of two things: one, it coincides with the rising trend line resistance and two, it is a psychologically significant round number. Additionally stochastics is showing that conditions are overbought, indicating that price could head south again after hitting 140.00. If this happens, its first downside target is the broken minor resistance turned support at 136.00.

USDCAD: Daily

PoD Chart

Moving on to another pair showing signs of reversal is the USDCAD. Notice how price just touched and bounced from the 1.0585 price level that, coincidentally, lines up with both the 50% Fibonacci retracement level and the broken support from last week. Does this mean that price is ready to head back to support at 1.0200 and beyond? Possible, especially if sellers manage to break past through the previous day’s low. However, take note that stochastics is far from overbought territory indicating that buyers might still have some juice in them. Watch out for 1.0585, as a break in this area could take the pair all the way to the 61.8% Fibonacci retracement level at 1.0674.

AUDUSD: 1-hour

PoD Chart

Lastly, let’s end with a short term look at recent AUDUSD movement. The pair has been trending slowly higher as of late, as can be seen by the ascending trendline. With stochastic showing overbought conditions, we could see another test of the trend line soon if the pair drops. The question is, will it hold? If not, we could find support around 0.9190, which has held as a strong support area as of late. If not, we could see the pair break and test lows at around 0.9110. If on the other hand, the pair decides to keep shooting up, look for the pair to attempt to break the previous high at 0.9329.