Daily Chart Art – October 29, 2010

NZD/USD: 4-hour

NZD/USD Chart

How’s it hangin’ playas? Well if you ask NZD/USD, not very well! The pair looks like it may start falling judging by the hanging man candlestick that formed right at the top of the range. And if you take a look at Stochastic, you’ll see a familiar setup — a bullish divergence from price! Bears will probably push the pair back down to .7430 if they can wrestle control from the bulls. But don’t count the bulls out yet. A break above resistance could mean NZD/USD is headed for new heights.

AUD/JPY: 1-hour

AUD/JPY Chart

I’m a big fan of J-Lo’s, so you can bet I’m diggin’ the possibility of a double bottom formation on AUD/JPY! Right now, price is dropping quickly and looks as though it may retest support at around 78.80. If it gets rejected at this level, it may climb all the way back up to test the neckline resistance at around 79.70. Then again, you may want to consider shorting the pair if candlesticks begin to close beyond support.

USD/CHF: 4-hour

USD/CHF Chart

Wow, that rising channel on USD/CHF’s 4-hour chart has been holding for almost a month now! The price just hit the top of the channel around .9930 before sliding back down and aiming for the bottom again. I put up some Fibs to see where the price could bounce from, and it looks like it found support at the 38.2% retracement level. However, Stochastic is still pointing down, which means that sellers still have enough energy to push USD/CHF lower. If the pair breaks below the Fibs and the bottom of the channel, its uptrend may be over.

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