Daily Chart Art – April 11, 2012

NZD/USD: 4-hour

NZD/USD 4-hour Chart

First on my list is NZD/USD. As you can see, the pair just bounced off at .8125, a level that has served as support previously in the past. With the Stochastic turning and moving slowly out of the oversold territory, it looks like the pair could climb and retest the falling trend line resistance again. Let’s see how price action unfolds today!

AUD/USD: 4-hour

NZD/USD 4-hour Chart

If you’re not into range trading, then perhaps this potential breakout play on AUD/USD can tickle your fancy. AUD/USD just formed a nice and very clear falling wedge, suggesting that price could rally soon. A falling wedge is typically considered a reversal pattern as price tends to breakout to the upside after a bit of consolidation at the tip of the pattern. If you’re looking to buy the pair, wait for price to actually trade above the falling wedge pattern for confirmation.

USD/CAD: 4-hour

USD/CAD 4-hour Chart

Speaking of breakouts, we’ve got one in USD/CAD! Yesterday, after consolidating in a tight range, USD/CAD finally made a strong push up and broke out of the symmetrical triangle formation. Given how the pair rose above both parity and the formation, it looks like we’ll see the pair climb further and test 1.0100!

Before you get carried away with all these chart patterns, remember that technical analysis is only half the story.

To get the complete picture and avoid getting blindsided by economic data, you also have to do your fundamental analysis.

Lucky for us, Pip Diddy fills us in on what we need to know about fundamentals with his Daily Forex Fundamentals.