Daily Chart Art – October 6, 2009

GBP/USD: 1-hour

PoD Chart

And we’re back to the Cable! The pair rallied yesterday to its 61.8% Fibonacci retracement level using last week’s low. Though, the pair moved south again after hitting the mentioned level. Currently, it is trading around 1.5930 and might find some support at 1.5900 if it continues to fall. If 1.5900 breaks, it might find itself all the way down to 1.5800. On the other hand, it could shoot up to 1.6000 if buying interests prevail.

AUD/USD: 4-hour

PoD Chart

Now, let’s take a look at the Aussie. The AUDUSD pair has been following a slow but steady rising trend line. Last Friday, we saw a false break before the pair bounce right back up. Right now, however, the pair is sitting at resistance just below .8800. This price area lines up with the .768 Fibonacci retracement level. With stochastic nearing overbought conditions, will the pair bounce back down and test the trend line? If it does, it could find support at .8650. On the other hand, if we see buyers continue to push the pair to the topside, it could test the yearly high near .8850 and possibly set a new one at .8900.

USDJPY: 4-hour

PoD Chart

And lastly, let’s look at that symmetric triangle formation on the USDJPY 4-hour chart! The pair just came from a sharp drop last week and the price seems to be consolidating right now. It could bounce up and down inside the triangle for a while before breaking out. But which direction could this breakout take? If it pierces the top of the triangle, it could encounter psychological resistance at 90.00, which is nearly in line with the pair’s previous high. On the other hand, if it breaches the bottom of the triangle, it could find support near 89.00, which is another psychological level.

  • ronron

    So are you buying or selling

  • efelicia14

    Oh yeah for the GBP/USD I have pending orders in on both the buy and sell side. when the pair finally does move I am in good shape either way… Thanks for the charts..

  • ronron

    So are you buying or selling

  • efelicia14

    Oh yeah for the GBP/USD I have pending orders in on both the buy and sell side. when the pair finally does move I am in good shape either way… Thanks for the charts..