Daily Chart Art – July 14, 2011

AUD/USD: 4-hour

AUD/USD 4-hour chart

Aussie bulls were large and in charge yesterday, but AUD/USD looks as though it might belong to the bears today! If you pull out your 4-hour chart, you’ll probably be surprised to find that this pair is right below the 1.0800 major psychological handle. A bearish divergence seems to be forming and this could be a sign that bears are ready to step in and take control once again.

USD/CAD: Weekly

USD/CAD weekly chart

Why hello again, Ms. J-Lo! I just can’t seem to get enough of lovely double bottom formations! Yesterday’s sharp USD/CAD selloff had the pair tumbling down the charts, and now it looks as though it’s only a matter of time before price retests .9500. This may be a good place to buy the pair since it held well as support in the past. But don’t dive in just yet! USD/CAD has been very bearish as of late and it may just form new lows. To avoid getting pummeled by a breakout, it’s best to wait for reversal patterns to form in our marked support area.

GBP/USD: 4-hour

GBP/USD 4-hour chart

Revisiting Cable, we can see that this bad boy went on quite a rampage yesterday, blowing right through some key resistance levels. But it’s anything but clear skies ahead for pound bulls. They’ll soon be facing stiff resistance in the form of a long-term falling trend line and a former support and resistance area. As you can see, Stochastic is already deeply overbought so it might not be long before we see a turnaround.

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. Check him out, playas!

  • Hooikeong

    Is AUD/USD forming a triple top above? Thanks for sharing buddy, have a good weekend ahead!