Daily Chart Art – July 16, 2012

EUR/USD: Daily

EUR/USD: Daily Chart

Whatup homies! If you like reversal setups, then this one might be for you! Tweezer bottoms are forming on the daily chart of EUR/USD, and with bullish divergence in the works, this could signal the end of the euro’s slump. To be on the safe side though, wait for more confirmation, like another bullish candle close, before establishing a buy position.

USD/CHF: Daily

USD/CHF: Daily Chart

Talk about a mirrored image! We’ve got almost the same setup emerging on USD/CHF, except that it’s inverted! Take note that tweezer tops have formed near the .9800 handle, which has served as an area of interest in the past. I suggest waiting for another bearish candlestick pattern (i.e. three black crows) to form before dropping a short bizomb on the markets!

GBP/USD: 4-hour

GBP/USD: 4-hour Chart

Lastly, here’s a look at Lady Cable. The pair has been consolidating lately into a descending channel, forming lower highs and lows. With Stochastic now entering overbought territory, we could see a reversal soon. Lookout for a test of top of the channel at around 1.5650. If we see some reversal candlesticks form at that area, you know what to do!

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.

2 comments

  1. Megapronk

    It seems to me that EUR/USD and USD/CHF pairs are usually mirrored now, because of the fact that EUR/CHF is so stagnant.

    Reply
  2. Pelle Svanslös

    Exactly Megapronk, it’s almost of no use to look at both pairs due to the SNF keeping EURCHF steady.

    Reply

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