Daily Chart Art – September 6, 2010

GBPUSD: Daily

PoD Chart

No better way to start the week than with a bullish divergence! Check out that baby on GBPUSD! Price seems to have stalled at the 38.2% Fibonacci retracement level, which just so happens to overlap with a former support and resistance. Is the pair destined to go up? Buyers have momentum on their side as stochastics is headed up from oversold territory. If they can muster the energy to rally some more, the pair may just retest the 1.6000 handle. But should they let off and allow sellers to take over, the pair could end up all the way south at 1.5000.

EURCHF: Weekly

PoD Chart

As you (and probably everyone else) may have noticed, EURCHF has been on a serious downtrend ever since it broke out of its sideways consolidation all the way back in February. But something tells me that we could see the pair slightly retrace soon… probably towards the 1.3250 region. Here’s what I see: one, a hanging man candlestick formation right on the 1.3000 handle and two, stochastics at oversold territory.

EURJPY: 4-hour

PoD Chart

*sniff sniff* Yeaaaah boy! I smell a double bottom in the works! EURJPY has been on quite a bull run lately. Now, it’s testing what looks like the neckline of a double bottom chart pattern. Do the bulls have what it takes to break the neckline and complete the formation? The area of 111.00 seems like a good place to take profits if you’re looking to go long. On the other hand, if you’re putting your money on the bears, the 106.50 handle appears to be a nice target.