Daily Chart Art – April 20, 2012

USD/CHF: Daily

USD/CHF Daily Chart

Which way will USD/CHF break out? There’s a huge symmetrical triangle on the pair’s daily chart as USD/CHF has been forming higher lows and lower highs. Stochastic is already crawling out of the overbought zone, suggesting that dollar bears could have the upper hand. But who knows if dollar bulls will suddenly take charge? Make sure you review how to trade breakouts and how to spot fakeouts if you plan to grab pips off this setup.

NZD/USD: 4-hour

NZD/USD 4-hour Chart

Here’s a setup that Happy Pip wouldn’t want to miss. Remember that NZD/USD range she pointed out last week? Well, it looks like the range is still holdin’ like a boss as the pair just bounced off support around .8125. On top of that, there’s a bullish divergence as the pair made lower lows while stochastic showed higher lows. If Kiwi bulls are strong enough, they could take the pair back to the resistance at .8250 or even until the previous high near .8300. Check out the 9 Rules for Trading Divergences if you’re thinking of jumping in!

EUR/JPY: Daily

EUR/JPY Daily Chart

Last but not least, here’s one for my favorite monster, Cyclopip. He might like to keep his one eye fixed on this potential head and shoulders pattern forming on EUR/JPY as the pair appears to be pulling back to the area of interest at the 109.00 handle. Not only is that a nice juicy round number, it’s also closely in line with the 61.8% Fibonacci retracement level! Pretty cool, huh? If that level holds as resistance, EUR/JPY might find itself tumbling back down to support at 105.00.

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.

  • Neer

    Im confused

  • Albert

    My friend said to me, “If you want to be rich fast, do forex trading.” Is it true?

  • Titansx

    Could you explain more detail about your Entry, risk management & Risk Reward ration ?