Daily Chart Art – July 20, 2012

USD/CHF: Daily

USD/CHF Daily Chart

Oh no, it looks like the bulls’ reign is possibly coming to an end! Indecision candlestick patterns, a bearish divergence, and an overbought Stochastic… These are all signs that USD/CHF could stage a reversal to the downside soon. If you’re part of the bear camp, then now is a good time to consider entering! If the pair sells off, the next major support level won’t be until .9500.

GBP/USD: 1-Hour

GBP/USD 1-Hour Chart

Yesterday, the bulls finally broke the top of the ascending triangle and pushed the pair to new highs. It seems that Cable could go even higher, but not before it retraces a bit. The late buyers out there should keep a close eye on the broken resistance at 1.5660. Remember, whenever price passes through a major resistance level, that level becomes support. You never know, 1.5660 could serve as a good buy level!

NZD/USD: 4-Hour

NZD/USD 4-Hour Chart

Range traders, unite! It appears that NZD/USD has been showing some stable price action as it has been pacing back and forth within a wide 150-pip horizontal channel. It’s currently testing the top of the range, and with the Stochastic at overbought territory, we could see the sellers start jumping in again. A close below the .8000 major psychological level could lead to a strong bear rally to the bottom of the range.

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.

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