Daily Chart Art – September 3, 2010

EURUSD: 4-hour

PoD Chart

Where to, euro? It looks like the bulls were able to break the neckline resistance just above the 50.0% Fib of those smokin’ double bottoms. Good job bulls, good job. However, it seems like the bears have a strong hold at the psychological handle as EURUSD spent almost the entire day yesterday chillin’ at the neckline. This, along with stochastics hollering that the pair is already overbought, makes me wonder if we’ll be seeing a retracement from EURUSD today. Then again, maybe the bulls are just revving up and will start hustlin’ the pair all the way to 1.2900 anytime soon.

USDCAD: 4-hour

PoD Chart

Check out that neat double top formation on the 4-hour chart of USDCAD! Do you smell what the Loonie’s cookin’? Well, it looks ready to serve up a yummy reversal from that uptrend. There’s still one obstacle though; the price has yet to break below that neckline support at 1.0500. If it does, it could slide all the way down to that resistance turned support level around 1.0275. On the other hand, if 1.0500 holds, the pair could climb and form another top near 1.0670.

GBPJPY: 1-hour

PoD Chart

Just feast your eyes on that ascending triangle. It looks like Guppy is sportin’ a new bling bling! Sweeet! Do I hear bull chimes ringing? But wait! Stochastics, being in the overbought turf already, indicates that there may not be enough buyers left to push the pair past the 50.0% Fib and the 130.00 handle. And that’s not all! With GBPJPY making lower highs and stochastics making higher highs, it looks like there’s a possibility of a bearish divergence. Uh oh! I think it’s better for us to wait a while and see whether or not resistance holds before we bet our pips on Guppy.