Daily Chart Art – July 3, 2012

USD/JPY: 4-hour

USD/JPY: 4-hour Chart

Let’s kick off the day with a simple trend setup on USD/JPY. The rising trend line support is right smack at the 79.50 psychological handle, which probably explains why the dollar bears are having trouble dragging the pair under. Will the dollar bulls take over before the support breaks? Keep a close eye on this one, folks!

USD/CHF: 1-hour

USD/CHF 1-hour Chart

If you feel like trading retracements, then this setup is for you! On USD/CHF‘s 1-hour chart is a potential retracement at the 38.2% Fibonacci level. The pair is currently hanging at the .9550 minor psychological handle, which has been a support and resistance area in the past. Stochastic is in the overbought region too, so you might want to have your trade plans ready if you’re shorting the scrilla.

USD/CAD: 4-hour

USD/CAD: 4-hour

We know how our home girl Happy Pip loves ’em comdoll setups, so here’s one for her! On USD/CAD‘s 4-hour chart is a sweet descending channel, which has been holding since the start of June. It looks like the pair won’t be reaching the bottom of the channel anytime soon though, as the 1.0150 handle is providing strong support for the bulls. If you’re long on the dollar, then you could jump in as soon as the pair starts bouncing off the 1.0150 support and Stochastic leaves the oversold region.

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.