Daily Chart Art - September 7, 2009

AUDUSD: 4-hour

FINALLY! The AUDUSD finally broke past key resistance and established a new yearly high! The pair traded as high as 0.8537 late on Friday, before finally closing at 0.8509. How much higher can the pair go? The 4-hour chart shows that the pair is severely overbought so we may see a retracement. Will the former resistance turn to support now? If the pair ducks in below the line, it may find further stronger support around 0.8250. However, if the pair keeps shooting up, it may find it difficult to break through psychological resistance at 0.8600.

GBPUSD: 1-hour

A 60-minute chart of GBP/USD is shown above. The pair looks like it has broken above a complex inverted head and shoulders formation with a neckline pegged at the 1.6400 mark. This neckline may now act as a support. Currently, the stochastics is indicating that conditions are already overbought. Because of this, the pair may hover above the neckline for awhile before it gains some upward momentum again. It can easily reach 1.6500 once it does. On the other hand, it may also find itself down at 1.6300 if the resistance-turned-support fails to hold.

USDCAD: 4-hour

It looks like we've got another breakout from the USDCAD pair as the previous week drew to a close. The pair just pierced through the rising trend line support and to be heading towards a recent swing low at 1.0800. Now, If 1.0800 fails to hold, the next stop for the pair would support at the previous month's low at 1.0700. Still, with stochastic indicating that the pair might be overbought, the trip downwards might be losing steam. If this is the case, we might see the pair pullback and find some resistance at the previous broken support around 1.0900.