Daily Chart Art – December 19, 2011

USD/CHF: 1-hour

USD/CHF 1-hour Chart

First up, here’s USD/CHF on the 1-hour timeframe. With price making lower lows while Stochastic is making higher lows, it looks like a bullish divergence has materialized. Does this mean support at the 50% Fibonacci retracement level will hold? Maybe. If you feel like going long on the pair, watch out for a bullish candlestick to close around the support area. On the other hand, a close below Friday’s low around .9350 could signal that the pair is on its way down to .9200.

EUR/CHF: 4-hour

EUR/CHF 4-hour Chart

Now let’s head on over to the 4-hour timeframe of EUR/CHF. The pair recently broke support around the 1.2270 area. However, with reversal candlesticks forming just above the 1.2200 handle and Stochastic being in oversold territory, I have a feeling that the pair could test 1.2270 again. If there are enough euro bulls in the market, EUR/CHF could rally back up and test the previous support are which lines up nicely with the 38.2% Fib level. However, if not, the pair could continue trading lower and possibly test its previous low around 1.2130.

NZD/USD: 4-hour

NZD/USD 4-hour Chart

Finally, we have NZD/USD to end today’s piptastic roster of charts! If you’ve finished the School of Pipsology, then you’re a cool cat who probably sees the bearish divergence I just pointed out. Also, the pair testing resistance at the 38.2% Fib level makes it an even more appealing short. Sweet, eh? But be careful not to get too excited homies. A close above .7650 could signal that NZD/USD is on its way back up to .7750.

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. Toms Zvirgzdins

    USD/CHF – MACD shows bullish divergence on 4-hour timeframe, so it looks like a good signal to go Long. And there is an uptrend on daily, the price is right at the support

    Reply

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