Daily Chart Art – February 2, 2012

AUD/USD: Daily

AUD/USD Daily Chart

Check it out, homies! AUD/USD is closely approaching a significant resistance level at the 1.0750 mark. In fact, that’s the top of the ascending triangle on the same time frame! The question is: Will resistance hold or fold? Stochastic is already deep in the overbought area, suggesting that Aussie bulls are running out of steam. If that happens, watch out for a potential drop to the 1.0500 level or lower. Of course, there’s still a chance of an upside breakout so make sure you set your stops right if you’re trading this one!

USD/CAD: 4-hour

USD/CAD 4-hour Chart

My my, I’m sure Happy Pip has her eye on this falling channel on USD/CAD. This pair just loves to move and groove inside channels, doesn’t it? The 1.0050 minor psychological level just acted as resistance for the pair as it was closely in line with the top of the channel, but the .9975 mark seems to be holding up as support. If that breaks, the next support area seems to be at the bottom of the channel, just a little below the .9950 level.

NZD/USD: 1-hour

NZD/USD 1-hour Chart

Here’s another potential retracement play with the Kiwi. After bouncing from the 61.8% Fib and former resistance level yesterday, NZD/USD seems to be gearing up for another pullback as it is currently edging towards the 38.2% Fibonacci retracement level. Now that lines up with the .8300 major psychological level, which means that it could act as strong support. Stochastic is still pointing downwards, suggesting that the pair could fall further, but the uptrend could resume if the Fibs stand strong!

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.

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