Daily Chart Art: July 16, 2009

USDCAD: Daily

PoD Chart

For three consecutive days, the USDCAD has been on a steep free fall. When it’s going to stop? When will USDCAD find support? With stochastic approaching oversold conditions, the pair just might find some support at the 1.1000 price region and another one at this year’s low at 1.0800. Still, we can never be certain. Downward momentum is very strong and sellers could just very well break right past through it, confirming a bearish trend as it makes new yearly lows. If 1.1000 holds, price could bounce right back up and face resistance at 1.1300. Let’s see what will happen to the pair in today’s market!

AUDUSD: 4-hour

PoD Chart

Another com-doll rally! A couple of days ago, I pointed out how the pair was approaching key resistance at the .7850 price area. Well, the pair blew past that and other resistance points as the dollar has weakened the past couple of days! The pair is now approaching the top of the descending channel but is encountering some consolidation around the .800 to .8050 price area. Will the pair continue to go up and test the descending trendline? Or have buyers lost steam after the strong rally?

GBPUSD: 1-hour

PoD Chart

A 60-minute chart of GBP/USD is painted above. The pair recently broke out from a double bottom formation. Conditions are already overbought, however, as indicated by the stochastics. This means that the pair may hover just above the neckline for awhile before continuing its ascend. If it does, it may meet some resistance at 1.6500. The 1.6400 psychological mark corresponds nicely to the formation’s neckline. So I should say that this level is quite sturdy. If the sellers have enough power to break this area then we might see the price head down until it encounters some support at 1.6300.