Daily Chart Art – July 20, 2011

EUR/USD: 1-hour

EUR/USD Hourly chart

Ayt! First up in today’s line-up is EUR/USD in the 1-hour chart sporting what looks like a symmetrical triangle. Hmmm, I have a feeling that we’re gonna see a breakout soon. If you’re planning to root for the euro, I think it would be best for you to wait for the pair to close convincingly above 1.4200 as this could signal that the pair is on its way up to 1.4500. Meanwhile, if you plan on rooting for the dollar, a bearish candlestick below 1.4100 may mean that EUR/USD slip below 1.4000 again, so watch out!

USD/CHF: 4-hour

USD/CHF 4-hour Chart

Now put your hands up for USD/CHF lookin’ so sexy with those Fib lines. It seems to me that bears are revving up to push the pair to a new all-time low again with the pair forming a spinning top at the 38.2% Fibonacci retracement level and Stochastic showing a bearish divergence. Whaddaya think? Don’t worry if you’re feeling bullish for the dollar, not all hope is lost! Who knows, there may be enough bulls in the market to boost USD/CHF to test its previous low around the 50% Fib level. Heck, there’s enough dollar-lovin’ to go around today, the pair could even rally back up to .8500!

EUR/JPY: 4-hour

EUR/JPY 4-hour Chart

If you’re like Cyclopip who’s a big fan of crosses, this setup I spotted on EUR/JPY in the 4-hour timeframe may just tickle your fancy. It’s similar setup to what I pointed out on USD/CHF with the pair finding resistance at the 38.2% Fib level and Stochastic being in the overbought area already. I don’t find it hard to imagine EUR/JPY testing support at 110.00 soon. However, I don’t think I would hop on the bear bandwagon just yet. Note that Stochastic lines haven’t crossed. This could indicate that the pair still has room to move up and test resistance around its previous low at 61.8% Fib. If resistance there doesn’t hold, we may even see EUR/JPY skyrocket to 117.00!

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!

  • Chuka Madu

    I’m rather gearing for my bullish position around 1.4106 or 1.4150 support. The bullish move off 1.40 stands valid till 1.44/1.45 at least

  • Njanto

    I think eur/usd is going to go down I have already positioned myself I am just afraid it will first hit my stop then move down with out me. (the market does this from time to time coz its hate full and loves to spite traders) :-)

    • Cillian Murphy

      Agreed – looks like a bearish pennant on some of the higher timeframes

      • Njanto

        I got knocked out of this one, I am just going to take a brake for now.better entry point for your trade idea