Daily Chart Art – August 16, 2012

EUR/GBP: 4-Hour

EUR/GBP 4-Hour Chart

Two days ago, I warned you that the 38.2% Fibonacci retracement level on EUR/GBP might hold. It did, and now price is making its way lower. But with a major support level at .7828, price could potentially bounce. After all, the Stochastic shows that conditions are oversold and that the overall trend is admittedly up. For now, keep a close eye on this pair for a possible long trade.

USD/CHF: 4-Hour

UDS/CHF 4-Hour Chart

Pattern traders, huddle up! You wouldn’t want to miss a potential symmetrical triangle breakout on USD/CHF’s daily chart, would you? If you’re looking to go long on the pair, then watch the falling trend line resistance carefully. A convincing close above .9800 could lead to a strong rally to .9900.

GBP/USD: Daily

GBP/USD Daily Chart

Speaking of triangles, there’s also one on GBP/USD’s daily chart. As you can see, an ascending triangle has materialized as indicated by the flat resistance and rising trend line support. Ascending triangles are normally (emphasis on normally) considered as bullish continuation patterns as price usually breaks out to the topside. If a daily candle strongly closes above 1.5730, we could see price strong close above 1.5730 revisit former highs at 1.6000 and 1.6300.

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.

  • Prabakar Kv

    Thank u…………….