Daily Chart Art – October 8, 2010

USD/CAD: 4-hour

USD/CAD 4-hour chart

I was busy combin’ my fro for today’s com-doll party when I caught a glimpse of the USD/CAD 4-hour chart off my bling. The pair looks to be headed in the direction of a former support area. Now, what I’m thinking is that this support level may act as resistance. Stochastic seems to agree with me, too. Though the two lines have yet to cross, they’ve already formed higher highs while price has formed lower highs. Bearish divergence, baby! If you’re feeling bearish, look for the pair to fall and find support near the week’s low. But if you wanna side with the bulls, it might be best to wait until price breaks out and candlesticks close above 1.0230 before you buy up USD/CAD.

AUD/USD: 1-hour

AUD/USD 1-hour chart

I don’t know about you, but I like what I’m seeing on AUD/USD. I guess it’s because it reminds me of myself… It’s got lots of potential! Haha! If you’re looking to go long with the pair, you might get a chance to buy it cheap at the 50.0% Fibonacci retracement level. The pair had a hard time crossing this level before, and traders might not let it cross again. Look for the pair to retest .9900 if it bounces up. But if it breaks down, it could end up all the way down at .9600.

NZD/USD: 4-hour

NZD/USD 4-hour chart

And to finish off this shindig, let’s head on over to the bar and check out NZD/USD. After breaking out of a rising wedge and nearly testing the .7600 handle, the pair has retraced a bit and is now sitting at the former rising resistance trend line. Will resistance now act as support? With stochastic showing that the pair isn’t oversold yet, we may see sellers try and burst through support at .7500. If support holds though, we could see buyers come back in play and bring this pair back up to try and break through .7600.