Daily Chart Art – April 17, 2013

USD/CHF: 1-hour

USD/CHF Chart

What a strong breakdown by USD/CHF! Dollar weakness has been taking this pair south for the past couple of weeks, yet it seems like USD/CHF needs to pull up from its recent dive. Stochastic is in the oversold region, suggesting a potential bounce. If that happens, the pair could retrace up to the .9280 area, which is just in line with the 61.8% Fib and a former support level. Bear in mind that the 38.2% Fib coincides with the .9250 minor psychological level, which could also act as resistance if the retracement is shallow.

EUR/USD: Daily

EUR/USD Chart

Is that a giant head and shoulders pattern forming on EUR/USD’s daily time frame? The right shoulder has yet to be formed though, as the pair is currently stalling around the Fibonacci retracement levels. Stochastic is already in the overbought zone, hinting at a possible selloff, although it hasn’t crossed down yet. If the Fibs act as resistance for EUR/USD, the pair could be on its way back to test the neckline of the formation around 1.2850!

AUD/USD: 1-hour

AUD/USD Chart

Here’s another potential break and retest scenario! After its sharp dive from last week, AUD/USD looks ready to make a correction as it has bounced after hitting support around 1.0300. Stochastic is moving upwards, suggesting further rallies by this pair, but it seems like the former support at 1.0400 could act as resistance from now on. A larger pullback could take the pair up to the 61.8% Fib, which is close to the 1.0500 major psychological level.

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.