Daily Chart Art – February 21, 2012

USD/JPY: Daily

USD/JPY Daily Chart

Since many of you probably have a long position on the pair, I thought I’d put up the daily chart of USD/JPY. As you can see, there are some very interesting developments on the pair. Firstly, the pair is currently testing a major resistance level. Secondly, yesterday’s candle was a clear long-legged doji. And lastly, the Stochastic indicates that conditions are overbought. These signals seem to indicate that the pair’s rally is severely overdone, and price could soon retrace. Be careful!

AUD/USD: 1-hour

AUD/USD 1-Hour Chart

Surf’s up, dudes and dudettes! It appears that AUD/USD is riding fast on a rising trend channel on the 1-hour chart. With the Stochastic showing conditions are oversold and price finding support just above the bottom of the channel, there’s a chance we could see price rally and retest the top of the channel. Watch this pair closely in case of another bullish push!

USD/CHF: 4-hour

USD/CHF 4-Hour Chart

USD/CHF bears, beware! Yesterday, the pair found some significant support at the .9100 handle and with the Stochastic moving out of oversold territory, it seems that a move up is likely to happen. If you choose to jump in and price continues to rally, the .9200 and .9300 major psychological levels are the pair’s next probable stops.

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. Gray_Hunter

    The Guppy has a very similar pattern as the USD/JPY on the daily. I’m bullish on the pound overall, but I think I’m going to wait to see whether this resistance holds or not before jumping back in.

    Reply

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