Daily Chart Art – July 12, 2013

USD/JPY: 1-hour

USD/JPY Chart

Better keep your eyes locked on USD/JPY because it looks like it may break out any second! Right now, the market can’t decide whether it wants to trade above or below 99.00, and it has managed to form a pennant. Since the chart pattern was formed after a sharp drop, odds favor a downside breakout. But as y’all know, there’s no such thing as a sure thing in the world of forex, so we can’t rule out an upside breakout either.

EUR/CHF: 4-hour

EUR/CHF Chart

After staging a solid rally, EUR/CHF bulls seem to have lost some steam, allowing price to retreat from its highs around 1.2450. If you’re still feeling bullish for this pair, you might get to buy it at a bargain around the 1.2350 handle. Not only does it line up with the 61.8% Fibonacci retracement level, but it’s also where price will likely meet the rising trend line. This area acted as resistance before, so there’s a good chance we’ll see interest there again.

USD/CAD: 4-hour

USD/CAD Chart

The bottom of the channel on USD/CAD seems like a prime candidate for a trade setup. If you’re feeling bullish, you can go long in that area. And if you’re feeling bearish, you can wait for price to break the rising trend line and sell the pair.

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.