Daily Chart Art – August 9, 2012

USD/CAD: 1-hour

USD/CAD 1-hour Chart

First a bearish flag, and now a bearish pennant? Looks like the bears are in control of USD/CAD! It seems that sellers are gearing up for a break of the falling wedge that I pointed out in yesterday’s post. For now, I suggest you keep a close eye on this pair and be ready if and when price shoots off for new lows. A solid bearish marubozu candle could be a solid signal that this pair may be headed for the .9900 handle.

USD/CHF: 4-hour

USD/CHF 4-hour Chart

After forming a head and shoulders pattern and breaking lower, USD/CHF now seems poised for a retest of the neckline near .9750. Will it hold? Homies, before putting on any short positions, I think it might be best to wait for Stochastic to hit overbought territory and for solid reversal candlesticks to form at the neckline.

GBP/JPY: 4-hour

GBP/JPY 4-hour Chart

Lastly, here’s an update on Guppy. The pair is STILL trading within a symmetrical triangle, bouncing between the falling and rising trend lines. Now that price is testing the upper resistance level for the SIXTH time, will we finally see a breakout? A solid candle close above the 123.00 handle may give the bulls enough fuel to break this pair out of consolidation.

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.

1 comment

  1. MCF

    I’ve had my eye on this as well! I am waiting till it funnells a bit more to confirm the triangle position before i place orders. Certainly seems to be more pressure from the bulls though.

    Reply

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