Daily Chart Art – April 7, 2011

USD/CAD: 4-hour

USD/CAD Chart

Remember that descending channel I pointed out a week ago on USD/CAD? Today, let me zoom in to the 4-hour timeframe. Aha! It looks like there were enough bears to push the pair down to support at the bottom of the channel! However, with that hammer sitting nicely on the trend line followed by a bullish marubozu, could it be that the bear rally is over? Yikes! There’s also a regular bullish divergence which could indicate that bulls are revving up for another rally. Don’t get too excited setting your buy orders yet though. A convincing break below .9550 could signal that USD/CAD will tumble to its previous low at .9420.

USD/CHF: 4-hour

USD/CHF Chart

My, my, my, talk about being stuck in a tight range! As you can see on USD/CHF’s 4-hour chart, the pair has been unable to find clear direction in the past couple of days as it has been bound by resistance at the .9270-.9300 region and support at .9140. With price slowly climbing back up, it looks the pair is gunning for the top of the range again. Watch out bears!

EUR/USD: 4-hour

EUR/USD Chart

After being on a roll in the bull turf for the past few trading sessions, could it be time for the euro to retrace some of its gains? Hmmm, Stochastic being in the overbought area, and that doji and spinning top just below 1.4350, tell me it just may be! EUR/USD could pull back to the 61.8% Fibonacci retracement level and test support at the previous resistance area and the rising trend line before it continues its rally up the charts. However, if bears overpower the bulls, EUR/USD could plummet to 1.4050. So be on your toes!

  • Packygee

    Im diggin the retracement at 61.8

  • BigPippin

    Yeah. It’s a pretty dope setup

  • Packygee

    Kinda nervous about USD/CAD setup

    Prices today broke below a falling price channel bottom that had been in place since last May. This break could mark a downside acceleration.

    Your idea could still catch some pips from the intraday aspect of trading, however id advise caution. Tell me what you think.

  • BigPippin

    I think the swing long trade is still valid. It’s a reversal trade setup anyway, which means the potential reward is high compared to the risk.

  • Packygee

    agreed, ill throw something at it. are you holding a position? if so whats your target?

  • thepipmonster

    the eur usd might retrace to 50%-61.8% levels, just not sure how the rate hike will affect the pair

  • Packygee

    im watching rss feeds closely. my prediction is if the ECB increases rates, then eurusd price will increase.

  • Packygee

    Im diggin the retracement at 61.8

  • BigPippin

    Yeah. It’s a pretty dope setup

  • Packygee

    Kinda nervous about USD/CAD setup

    Prices today broke below a falling price channel bottom that had been in place since last May. This break could mark a downside acceleration.

    Your idea could still catch some pips from the intraday aspect of trading, however id advise caution. Tell me what you think.

  • BigPippin

    I think the swing long trade is still valid. It’s a reversal trade setup anyway, which means the potential reward is high compared to the risk.

  • Packygee

    agreed, ill throw something at it. are you holding a position? if so whats your target?

  • thepipmonster

    the eur usd might retrace to 50%-61.8% levels, just not sure how the rate hike will affect the pair

  • Packygee

    im watching rss feeds closely. my prediction is if the ECB increases rates, then eurusd price will increase.

  • PipJar

    USD/CAD may get a bounce/retrace up, but I think any low we make here will eventually get tested again, if not taken out.

  • PipJar

    USD/CAD may get a bounce/retrace up, but I think any low we make here will eventually get tested again, if not taken out.