Daily Chart Art – February 6, 2012

USD/CHF: 1-hour

USD/CHF 1-hour Chart

Anyone down to play a sweet little range setup on USD/CHF? I know I am! Check out the pair’s 1-hour chart and you’ll see exactly what’s got my mouth watering! The market has shown a lot of respect to .9225 and .9125 over the past few days, so I’ll be keeping an eye on these levels. But be sure to wait for confirmation from candlesticks before you act, bros! After all, we can’t rule out the possibility of a breakout… at least not with the SNB on intervention watch!

USD/CAD: 1-hour

USD/CAD 1-hour Chart

If Fibs are your thing, then this setup on USD/CAD is right up your alley! As you can see, the pair is stalling just below the .9950 handle, and it looks like it’s about to turn up. Take a look at Stochastic – it’s oversold like a boss! If the pair does manage to rally, I think the 38.2% Fib presents a potential resistance zone. It was once a solid support area, so there’s a chance the market will have trouble crossing this level again.

AUD/USD: 1-hour

AUD/USD 1-hour Chart

Last but not least is this ascending channel on AUD/USD. After finding resistance at the top of the channel, the pair has turned south and it looks like it’ll give the bottom of the rising channel another shot. If you think its uptrend will remain intact, look for the pair to find support around the 1.0680 former resistance area. On the other hand, if you’re feeling bearish this week, you may want to wait until we see a solid close below the bottom of the channel. A breakout to the downside could be the start of a major AUD/USD slide!

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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