Daily Chart Art – September 9, 2010

AUDUSD: 1-hour

PoD Chart

Up, up, and away! Is the Aussie set to fly higher today? That rising trend line connecting the pair’s lows seems to say so. However, stochastics is pointing down, suggesting that sellers are about to take control. They could take the pair back down, possibly until that area of interest around .9150. This is closely in line with the 50% Fibonacci retracement level, which means that the pair could find support there. But if sellers are a bit more aggressive, they could push the pair even lower and maybe break that rising trend line!

GBPJPY: 1-hour

PoD Chart

Oohlala! Set your eyes on that falling trend line on GBPJPY! Will the pair finally break the trend line, or is it destined to fail once again? It will have to get past a former resistance-turned-support if it wants to bust upwards. Unfortunately, stochastics is already headed down from overbought territory. If you’re planning to side with the bears, the previous lows seem like a good place to pocket profits. But if the bulls take over, they could send the pair all the way up to 131.00, a former support-turned-resistance.

GBPUSD: 1-hour

PoD Chart

So far, GBPUSD has been dominated by the bears. But for how long will they continue to reign? Looking at the hourly chart, the 50% Fibonacci retracement level seems like a good place for the bulls to make a counterattack. This area once held as resistance before and could possibly act as support in the future. If the bulls fail to stop the bears, GBPUSD might just continue to create new daily lows. But if they succeed in taking control, they might push the pair all the way to 1.5500. Let the battle commence!