Daily Chart Art – July 12, 2012

AUD/USD: 4-hour

AUD/USD: 4-hour Chart

Gather round Fibonacci fans, this one’s for you! After it appeared to be making a run for parity, AUD/USD has now retraced and is currently finding tough resistance at the 61.8% Fib level. With Stochastic now crossing over, this could be a sweet time to load up on those short positions. On the other hand, if we see a candle close above the 61.8% Fib level, it may signal that a run up to 1.0300 handle is in play.

USD/CAD: 1-hour

USD/CAD: 1-hour Chart

Yo Happy Pip! Here’s a comdoll setup you might be interested in! USD/CAD has been stuck in tight consolidation the whole week, trading within an ascending channel. How long is this sucka gonna hold? For now, I suggest just waiting till price retests the bottom of the channel and forms some reversal candles before buying.

USD/CHF: Daily

USD/CHF: Daily Chart

Lastly, here’s a setup for those of you who loves picking tops! Bearish divergence has formed, as price has formed a higher high while Stochastic has posted lower highs. Also, notice how yesterday’s candle closed as a doji, right smack at the .9800 psychological handle. Looking back, a doji also formed at the previous high before price dropped! Can history repeats itself? Wait for today’s candle close and if we see a bearish red candle, it may be a sign to go short!

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.

  • Marcio Frisso Santos

    Very nice setup for aud/usd. Unfortunately I saw this post just now. The price down 60 pips in 30 minutes!!!