Daily Chart Art – October 4, 2010

NZDUSD: 4-hour

PoD Chart

What’s up? The Kiwi is, fo sheezy! NZDUSD finally broke above the ascending triangle I pointed out last week, past the resistance at 0.7400. Hollah! I don’t think that the Kiwi is done with the psychological handle yet though. With stochastic in the overbought turf and sportin’ a crossover, it looks like the bears may still be able to push the pair back down to 0.7400 for a retest. Be on your toes and see if resistance has turned into support.

EURUSD: 1-hour

PoD Chart

Is that a retracement I see on EURUSD? After breaking out of its consolidation, the pair’s rally seems to have finally lost mojo. Price was strongly rejected when it hit resistance at the 1.3800 handle, hinting that price had finally topped out. With stochastic pointing down, it looks like a test of resistance-turned-support at the 50% Fibonacci retracement level is in the cards. Let’s see how price reacts at 1.3700!

USDCHF: 1-hour

PoD Chart

Shabam! Check out that bullish divergence that USDCHF is struttin’! With price making higher lows and stochastic making lower lows., it looks like the bulls are sizzliiin’ for a run up the charts, possibly aiming for last week’s highs at around 0.9860. But hold up! Take note that the pair has been cruisin’ down for quite a while now as proven by that falling trend line. Hmmm, if you’re planning on siding with the bears on this one, you may want to wait for the pair to break below the minor support at 0.9730.

  • weelp

    Hmm,

    Doesn’t seem to be playing out very well. Never underestimate the power of the FED. Technically the set up is great but Ben is dollar and he wants to devalue it a lot more against other currencies.

  • weelp

    Hmm,

    Doesn’t seem to be playing out very well. Never underestimate the power of the FED. Technically the set up is great but Ben is dollar and he wants to devalue it a lot more against other currencies.