Daily Chart Art – July 18, 2011

USD/CAD: Daily

USD/CAD Daily chart

First up is a daily chart of USD/CAD. After breaking out of an ascending channel, the Loonie has dropped and looks like it could be headed to test former lows at .9460. Watch out though, as this playa seems to be forming some bullish divergence. With Stochastic about to crossover out of oversold territory, we may not see this pair test the former support level.

NZD/USD: Daily

NZD/USD Daily chart

If you’re a fan of picking tops or bottoms, this setup might just be for you. NZD/USD has repeatedly set new highs, but there’s a chance that we could see a top soon. Bearish divergence has formed, as Stochastic has been posting lower highs. It might be best to wait for more confirmation, such as a bearish marubozu candle before going short on this pair.

AUD/USD: 4-hour

NZD/USD Daily chart

Lastly, I’ve got Happy Pip‘s favorite pair, AUD/USD! After failing to break through resistance at 1.0790, the pair has dropped 200 pips. However, the Aussie’s struggles may be coming at an end, as it is approaching a rising trend line. Stochastic is also in oversold territory, meaning that there might not be enough momentum for the pair to drop further. I’d wait for a reversal candle just above the trend line before putting up a long position!

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!

  • Al2cand

    erratum usd/cad: should change ‘the Loonie has dropped…’ to: ‘the greenback has dropped…’