Daily Chart Art – October 26, 2010

AUD/JPY: 1-hour

AUD/JPY Chart

Homies, let’s start this day off with AUD/JPY! Check out that falling wedge looking about as fresh as the Fresh Prince! As you know, falling wedges are usually bullish. If you’re looking to side with the bulls, you could try going long at the break of the wedge and aim for resistance at 80.50. But if you think the bears will take charge today, it would probably be best to wait for price to cross the minor support/resistance level at 79.90 before selling AUD/JPY.

EUR/JPY: 4-hour

EUR/JPY Chart

Is that a descending trend line I see on the 4-hour chart of EUR/JPY? Why, yes it is! With price forming “lower highs” and “lower lows”, it looks like the current technical bias is for the pair to start heading down. That being said, look for the pair to possibly test former major support at the previous week’s low, somewhere around the 111.60 region. Be careful and don’t be too quick on pulling the trigger! The Stochastic show that the pair is currently oversold, which means we could mean that a retracement could happen first before the pair begins falling!

EUR/GBP: 1-hour

EUR/GBP Chart

Better get it while it’s hot! Looking at the way price has been moving on EUR/GBP, it seems like we’ll see a retest of the rising trend line soon. The pair also seems to be approaching a former support area at .8850 while Stochastic treads in oversold territory. Time to buy that sucka, right? Hold your horses, cowboy! You don’t want to get burned by a break of the uptrend, so wait for bullish candlesticks to form in the support area before going long.