Daily Chart Art – August 17, 2012

USD/CHF: Daily

USD/CHF: Daily Chart

For those who are waiting for USD/CHF‘s 4-hour symmetrical triangle to break, you could take clues from the daily chart. The pair is near the .9700 major psychological handle, which has served as a strong support and resistance level for the past couple of weeks. Will the former support hold again this time? Stochastic isn’t giving us clues as it’s on middle ground, so you gotta be careful in taking sides on this one!

EUR/JPY: 4-hour

EUR/JPY: 4-hour Chart

Next up for today is a possible rising wedge action for EUR/JPY swing traders. The euro bulls are struggling with the 98.00 major psychological resistance on the 4-hour chart and the overbought Stochastic signal isn’t helping either. You could aim for the 97.00 handle if you’re planning to short the euro, but you could also wait for the pair to hit the rising trend line if you think that the euro rally still has legs in it.

EUR/AUD: 1-hour

EUR/AUD: 1-hour

Last but not the least is this sweet rising channel setup that I spotted on EUR/AUD’s 4-hour chart. The pair is right smack in the middle of the channel, which is a good place as any to pick a direction for the pair. Will it drop to the 1.1700 level, or will it shoot up to the 1.1850 area? Hope you have fun trading this one!

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.

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