Daily Chart Art – August 4, 2011

GBP/USD: 1-hour

GBP/USD 1-hour Chart

Bounce, bounce, bounce, bounce… That’s exactly what GBP/USD has been doing in its 1-hour chart. The pair has been stuck inside a huge range, with support around 1.6360 and resistance around 1.6440. It’s sitting right at the resistance level right now, with stochastic in the overbought region. Does this mean that pound bulls are ready to retreat? Make sure you check out Pip Diddy’s U.K. economic commentary before you jump in a short GBP/USD trade!

NZD/USD: Daily

NZD/USD Daily Chart

Now here’s a daily chart for all you position traders out there! The pair’s rising trend line is still very much intact but it looks like Kiwi bulls are losing steam. Stochastic reached the overbought area and started to turn, suggesting that sellers are about to take over. Whether this is just a mere retracement or a reversal remains to be seen, but I’d stay on my toes if any of the Fib levels hold.

USD/CAD: 1-hour

USD/CAD 1-hour Chart

I know Happy Pip‘s having a tough time catching a good trade lately so I thought I’d throw in another comdoll chart for her. USD/CAD is inside a rising channel on the 1-hour chart and just fell after hitting the top of the channel. Of course it also helped that a bearish divergence formed right there. But how low can this pair go? The bottom of the channel, which is right around the .9600 handle, could hold as support and push the pair back up again. If the channel breaks though, it could be a good time to short USD/CAD.

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. Check him out, playas!

  • raul

    No one can corner the market
    The foreign exchange market is so huge and has so many participants that no
    single entity (not even a central
    bank or the mighty Chuck Norris himself) can control the market price for an
    extended period of time. Read more: link to babypips.com