Daily Chart Art – April 24, 2012

AUD/USD: 1-hour

AUD/USD 1-hour Chart

AUD/USD has been trending down over the past couple of weeks, forming lower highs and a very clean falling trend line in the process. But right now, it looks as though the bears are taking a breather, as the pair appears to be on its way to retest the trend line. The area of 1.0350 looks like a prime place to get short, since it lines up well with the falling resistance. But y’all better stay flexible, homies! Stochastic is already in overbought territory, so this pair may turn around any minute now!

NZD/USD: 4-hour

NZD/USD 4-hour Chart

Rangers, you’re in for a real treat – NZD/USD just bounced off the .8100 support zone! Not only that, but it formed a textbook dragonfly doji on the 4-hour chart, too. Some may consider this as an early sign that the pair may soon make its way back to the middle of its long-term range. But is a major reversal really in the works? Read the School of Pipsology’s lesson on identifying reversals to help guide you with this pair!

USD/CAD: 1-hour

USD/CAD 1-hour Chart

Let’s cap off today’s terrific trio with another trend line play, this time on USD/CAD! The market hasn’t been kind to the Loonie lately, and from the looks of it, the punishment will continue! Stochastic is already in deep oversold territory and showing a bullish divergence – signs that usually indicate that a pair is about to rally. But you don’t have to take my word for it, check out our awesome divergence cheat sheet and see for yourself!

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.

2 comments

  1. Eduardo K.

    You are the only blogger/twitterer to see that rising trendline on USD/CAD it seems. I’ve been trading it for a couple of days now and I am currently long from the latest trendline hit.

    Reply

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