Daily Chart Art – February 28, 2013

EUR/USD: 1-hour

EUR/USD: 1-hour Chart

It looks like a pullback is in order, ladies and gents! After consolidating for quite some time around the 1.3050 area, EUR/USD decided to take a break from its recent dives. The pair seems to be retracing to the 50% Fibonacci level, which is in line with a former support area that could act as resistance from now on. Note that stochastic has reached the overbought region, suggesting that euro bears could pounce soon. If you’re planning to jump in a short trade, you might want to set your stop loss above the 61.8% Fib.

USD/CHF: 1-hour

USD/CHF: 1-hour Chart

Woah, that rising channel on USD/CHF’s 1-hour time frame is already a month old! Will the uptrend still hold? The pair looks poised to test the bottom of the channel once more as stochastic is suggesting a further move down. If the channel support holds, the pair could bounce right back up to the top around the .9400 handle. Be mindful of that resistance level around the .9350 minor psychological level, which has been holding for more than a week!

USD/CAD: 4-hour

USD/CAD: 4-hour Chart

Last but certainly not least, here’s a potential swing trade setup on USD/CAD. The pair has been rallying for days on end, but it appears that Loonie bears have run out of gas. If a retracement takes place, the pair could pull back to any of the Fib levels that are near the rising trend line on the 4-hour chart. Stochastic just reached the oversold region but hasn’t quite crossed upwards yet, which suggests that Loonie bulls are still in control at the moment. Wait for candlestick patterns to form at potential support levels before going long.

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.