Daily Chart Art – July 22, 2011

EUR/USD: Daily

EUR/USD Daily chart

Boy did the euro hustle some muscle yesterday! Now it looks like the pair is back up to the 1.4400 psychological handle, testing resistance at the falling trend line on the daily timeframe. Are there enough bulls to push EUR/USD past the resistance area, back up to its previous high above 1.4500? Hmmm, let’s see how today’s candle will close. If it closes as a reversal candlestick, it could be a sign that the bears would push the pair back down to 1.4000.

EUR/CHF: 4-hour

EUR/CHF 4-hour chart

If you’re a fanboy (or fangirl) of crosses like big ol’ Cyclopip, this smokin’ setup on EUR/CHF may just tickle your fancy. It seems to me that the bears are getting ready to pounce on the euro once again with that shooting star that materialized around the 50% Fibonacci retracement level and near the pair’s previous low. Making it even tempting isStochastic which is showing bearish divergence. Just don’t get too excited shorting the pair though. Who knows, euro bulls may still have something up their sleeves and the pair could rally back up to 1.2000.

USD/CAD: 1-hour

USD/CAD Hourly chart

Lastly, here’s USD/CAD for y’all! The pair is now hovering around the support area which I pointed out earlier in the week on the daily timeframe. Zooming in to the 1-hour chart, we see that the pair is sporting a bullish divergence. Hmmm, does this mean we’ll see USD/CAD rally back up to .9550? Maybe. But I think it would be better to wait for some bullish candlesticks for confirmation. If the pair convincingly closes below yesterday’s low at around .9420 may mean that the pair is on it way down to .9300.

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!

1 comment

  1. ANI

    Dear Big Pippin
    In the H1 timeframe of the  chart USD/CAD I have observed the falling wedge also. Can you please analyse in the event the price breaks out of the wedge, what could be the possible target price ?

    Reply

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