Daily Chart Art – August 8, 2011

EUR/USD: 1-hour

EUR/USD 1-hour Chart

What a way to start the week! EUR/USD gapped up over a hundred pips over the weekend, but before euro bulls could celebrate, bears clawed back and closed the weekend gap. Now it looks as though the forming falling trend line may hold as support right at 1.4300. If sellers can’t push the pair below 1.4300, the pair’s next destination might be 1.4400. However, if this level fails to hold, the pair may just revisit the former low at around 1.4100.

GBP/USD: 1-hour

GBP/USD 1-hour Chart

It’s alive! The range on GBP/USD, that is! It looked as though the range was done for when the pair gapped up over the weekend. But no sooner had the pair risen above 1.6450 than sellers poured back in and muscled GBP/USD back down. Stochastic seems to suggest that the pair may be headed back to the bottom of the range, an almost 200-pip drop. But if bulls can push for a retest of 1.6450, they may just be able to force a breakout and see fresh highs on GBP/USD.

USD/CHF: 1-hour

USDCHF 1-hour Chart

Last but not least, we have USD/CHF sporting a similar weekend gap on its 1-hour chart. Feeling bearish for the dollar? Get ready to short because the pair is already showing signs of hesitation right below the 38.2% Fibonacci level, which just so happens to line up with a former support level. Chances are, the pair will continue falling at least until it hits the week’s opening price. But if the market can’t sustain sub-0.7600 levels, the pair may return to trade around .7700.

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!

  • Tecnocrat

    Man, I’m buying dollars and don’t feel ashamed about it. And going all the way down to 1.38 (EUR/USD) Debt ceiling problems? Yeah! Credit crisis in Europe? Yeah! All of this sounds to me like: Risk Aversion. And the dollar (maybe not in 5 or 10 years) is the dollar. It’s very cheap and almost any currency it’s very high. The Fall is coming ;)

  • saka

    You are wonderful! I keep praying for you everyday I wake up. Almighty God will increase your wisdom, more grease to your elbow