Daily Chart Art – July 10, 2012

USD/JPY: 4-hour

USD/JPY: 4-hour Chart

It’s make or break time for USD/JPY at 79.50! Will this level hold or will it break down under pressure? Keep in mind that this handle lines up almost perfectly with a rising trend line on the 4-hour chart, so the trend favors a bounce off this level. But lately, sellers have been in control of USD/JPY, so you should also be on the lookout for a possible breakout! Remember, the key to making pips is to be flexible, homies!

USD/CAD: 4-hour

USD/CAD: 4-hour Chart

Looks like that falling channel I pointed out a few days ago held quite solidly, because USD/CAD is now back in the middle! Now we gotta wonder when we can expect it to turn back down. It’s finding resistance at 1.0200 at the moment, and Stochastic is already showing a bearish divergence. But be careful! If buyers push this pair above this major psychological handle, it’s likely that they’ll be in control until price hits the top of the rising channel.

NZD/USD: 4-hour

NZD/USD: 4-hour Chart

The Fib levels are holding as support on NZD/USD at the moment, but for how long will they be able to hold sellers at bay? Right now, Stochastic is showing a bullish divergence, signaling a potential bull run. However, if price manages to close below the 61.8% Fibonacci retracement level, it may not stop falling until it hits the .7850 support zone.

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.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>