Daily Chart Art – February 28, 2012

EUR/USD: 4-hour

EUR/USD 4-hour Chart

Boy, oh boy! It looks like euro bulls are running out of steam and might need to take a break from the recent rallies. The pair seems ready to pull back to the former resistance level at the 1.3300 major psychological mark, which could act as support from now on. When I drew the Fibonacci retracement levels, I noticed that the 1.3300 handle is right in line with the 38.2% Fib. Pretty neat, huh?

GBP/USD: 4-hour

GBP/USD 4-hour Chart

If you’re into playing ranges, then this setup on GBP/USD’s 4-hour time frame might be for you! The pair has been moving sideways for quite a while now, finding support at the 1.5650 minor psychological level and resistance just below the 1.5900 handle. The pair just turned after hitting the top of the range and appears ready to head all the way down to the bottom. At the same time, stochastic just moved out of the overbought zone, suggesting that pound bears could have the upper hand for now.

USD/CHF: 4-hour

USD/CHF 4-hour Chart

Here’s another retracement play, this time with the Swissy! The pair just broke below the major psychological support at .9100 and dipped to the .8950 area. However, it seems that Swissy bulls need to catch their breath as the pair looks ready to retrace. Stochastic is also pointing upwards, suggesting that USD/CHF could head a bit higher in the meantime. The 50% Fib level lines up with the former support at .9100, which means that it could act as resistance later on.

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.