Daily Chart Art – September 11, 2009

GBPJPY: 4-hour

PoD Chart

So what are we seeing here… It seems that buyers are bringing back the pair to previously broken support at 153.50. From the BabyPips School of Pipsology, we know that whenever prices pass through support, that support now becomes resistance. If the upward move proves to be a retracement, sellers might be waiting somewhere around 153.50 to short the pair and jump back into the overall downward trend. If this happens, potential support could be found around the previous day high at 152.00. On the other hand, a break at 153.50 could encounter resistance at 155.00, a big fat juicy psychologically significant number.

USDJPY: 4-hour

PoD Chart

It looks like the descending channel on the USDJPY 4-hour chart is still going strong! The pair seems to be reaching for the bottom of the channel and could find support right around the previous low of 91.44. If it crawls to the top of the channel, it could encounter resistance at the psychologically significant 92.00 mark. I’m also spotting a bullish divergence signal on the chart since the pair drew lower lows but the stochastic showed higher lows. Could it be due to shoot up anytime soon?

AUDUSD: 1-hour

PoD Chart

After breaking out a few days ago, the AUDUSD went off setting new yearly highs for a couple of days running. Yesterday however, it failed to do so and it appears that the pair is cooling down. It has been consolidating between a range of about 100 pips over the last couple of days. Could this mean that buyers have run out of steam and will sellers starting making some plays? If they do, we could see support for the pair at 0.8550 and at 0.8460, which was a former resistance level. If however, buyers still have strength for another push, they could push the pair to test for new yearly highs at 0.8700.