Forex Top 3 Chart Setups: Three Currencies on Critical Weekly Trendlines

Mark Whistler is the founder of www.WallStreetRockStar.com and is the author of multiple books on trading. Mark's newest book, The Swing Trader's Bible - co-authored with CNBC/Fox News regular guest Matt McCall - will be on shelves in late summer, 2008. In addition, Mark also writes regularly for TraderDaily.com and Investopedia.com.

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Top Chart Setup #1: Greenback Attempting to Overtake Yen

The weekly chart of the USD/JPY is currently presenting some very interesting technical developments. Foremost, the dollar is testing descending resistance of the 11-month trend.

What's more, at the bottom of the chart, we see a distinct cup and handle, with the handle meeting descending resistance almost exactly. At the end of the day, if bulls are able to push the USD/JPY over 106.50, a larger reversal could be in store. It's important to remember; however, that the dollar has previously failed twice over the past 11-months, when attempting to test the aforementioned trend line.

Top Chart Setup #2: New Zealand Dollar on Support

Sticking with our weekly chart theme, the NZD/USD is now trading very close to ascending support of the relevant trend... greenback bulls would like to see the "kiwi" breach 0.7600 to instigate another torrid move downward. However, given that New Zealand's key interest rate is almost three and a half times that of the U.S., it's unlikely that the New Zealand dollar is going to completely fall through the floor right away.

Top Chart Setup #3: Old Pals: The Pound and the Franc

Taking a look at a weekly chart of the GBP/CHF, the pair is sitting on critical support of the past four weeks. The story here is fairly straightforward, should the pound fall below 2.0100, bears will likely eat the Queen's currency for lunch. However, it's been almost a year since the pound traded above the 20-period moving average, something that would gain notice of bulls, should the event occur in the next few weeks. Either way, the GBP/CHF is on the verge of making a significant move.