Daily Chart Art – December 21, 2011

EUR/USD: 4-hour

EUR/USD 4-hour Chart

Aha! It looks like the euro charged up the charts yesterday like Rudolph the red-nosed reindeer. With Stochastic still not being in the overbought territory, indicating upward momentum, there’s a good chance that we could see EUR/USD hustle some muscle all the way up to the area around its previous low between the 38.2% and 50% Fibonacci retracement levels. But that’s just my two cents. If the pair gets rejected at the 1.3100 major psychological handle, it could tumble back below 1.3000.

USD/CAD: 4-hour

USD/CAD 4-hour Chart

Did USD/CAD just form a double top on the 4-hour timeframe? It seems like it! We learned in the awesome School of Pipsology that the drop in price is USUALLY equal to the height of the double top. And so, it may not be long until we see USD/CAD go all the way down to 1.0100. That is, of course, if the pair doesn’t bounce from support at the Fib levels. Take note that Stochastic is already nearing the oversold area while price is testing support at the 38.2% Fib. It might be best to keep an eye out for candlesticks, homies. A bullish marubozu could signal that the pair is about to skyrocket back to 1.0400 or even higher!

GBP/JPY: 4-hour

GBP/JPY 4-hour Chart

Yo! Just look at GBP/JPY on the 4-hour chart chillin’ like ice cream fillin’ at the 122.00 major psychological handle. If you’re feelin’ bearish for the pair, you’d be happy to know that it has formed a couple of reversal candlesticks and Stochastic is in the overbought area already. BUT! Don’t get too excited selling the pair all right? A close above yesterday’s high at 122.20 could mean that the pair is headed back up to 123.00!

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.

  • Lennoxf20

    hey, im new to this forex thing, how far can I expect to make it, with hours of studying? I have alot of time on my hands, any advice would help, thanks

    • Marius

      Well i’m not the best trader myself,but : Learn, trade, learn, trade on a real account, mini-account recommended, so you don’t lose to much money, trade, get experience, a lot of it, and in time you will learn and become profitable, and  most important .. don’t give up!!! …it needs time and most probably some money to lose to become good at it…hmm..take these expenses as a college tuition cost. Start by finishing School of Pipsology ..it has mostly all the knowledge you need to start trading. 
      I wish you good luck!

  • Forex Rates

    Such an awesome explanation through graphs are. Thanks for sharing it to us.