Daily Chart Art – August 22, 2012

EUR/USD: 4-hour

EUR/USD 4-hour Chart

Judging from EUR/USD‘s 4-hour chart, it looks like the euro bulls are taking a breather. The pair is struggling to rise above the resistance area of a possible rising wedge, while the overbought Stochastic signal is also supporting the euro bears. Will the pair break above the 1.2500 handle, or will it retrace all the way to the 1.2350 area?

USD/CAD: 4-hour

USD/CAD: 4-hour Chart

Breakout alert! USD/CAD is testing the .9900 major psychological handle, which is also conveniently the neckline of what looks like a double bottom pattern on the 4-hour chart. You can aim for at least the .9950 area if you’re trading an upside breakout, but you can also wait for an overbought Stochastic signal if you think that the .9900 level will be too hot for the Loonie bears to handle.

USD/JPY: Daily

USD/JPY: Daily Chart

I don’t always put USD/JPY setups, but when I do, it’s as good as this one! I spy with my Ray-B-covered eyes a nice retracement for the scrilla! Aside from bouncing from the 61.8% Fib and the 79.50 minor psychological level, USD/JPY is also sporting a bearish divergence on its daily chart. Will it drop all the way to the 78.00 handle, or will it break the odds and test its former highs near 80.50?

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.

  • SEGUN

    pls. kindly send me daily news on forex cos, i,m new in the market

    • bigpippin

      Thanks for checking my blog, Segun! You can subscribe to BabyPips.com‘s daily newsletter where you’ll find links to my daily blog posts. Here’s a link:
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  • Granticus_Maximus

    USD/CAD: Might also be worthwhile noting the trendline that once acted as support is now as resistance?

    • bigpippin

      Looks like USD/CAD bounced off .9950, mate! Do you have an open position on the pair?

      • Granticus_Maximus

        Nah mate, I’ve been hitting mostly the EUR and GBP pairs against the USD and JPY recently. I don’t trade the USD/CAD too often hey… It’s just too slow for me…

        Looks like that USD/JPY trade idea of yours was supported perfectly by those FOMC minutes too! Would’ve been a nice trade!