Daily Chart Art – April 12, 2012

EUR/USD: 1-hour

EUR/USD  1-hour Chart

Up and down EUR/USD goes, where it ends up nobody knows! EUR/USD has been bouncing inside a rising channel for a couple of days now. Right now, the pair is trading at the middle of the channel, still deciding whether it will go higher or lower. If the pair sells off, watch the 1.3200 level closely. This major psychological level coincides nicely with the bottom boundary of the channel, so it could serve as major support!

EUR/JPY: 4-hour

EUR/JPY 4-hour Chart

For more than a week, EUR/JPY has been selling off like mad. It is currently sitting at the 106.00 level, 400 pips lower from the most recent swing high. Will it continue to go lower today? It’s certainly possible but a couple of technical signals have appeared that hint otherwise. First, price just bounced from the 105.60 area, which is a major former low. Second, the short-term falling trend line resistance that has kept the pair from rising is very steep. Steep trend lines don’t usually hold for very long. And third, the Stochastic just moved out of oversold territory and is showing upward momentum. If you’re bearish on the pair, be very careful today!

EUR/CAD: Daily

EUR/CAD Daily Chart

Geometry time! It appears that EUR/CAD is starting to form a symmetrical triangle. Price bounced from the bottom of the formation a couple of days ago and has been climbing since. With the Stochastic pointing up, we could see price continue to rise and test the 1.3200 level

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.

  • Bijoymj

    EURJPY- ‘Right’  An upward breakout is essential