Daily Chart Art – July 6, 2012

USD/CAD: 4-hour

USD/CAD: 4-hour Chart

If there’s one thing that Happy Pip loves about USD/CAD, it’s that this pair loves to range! Right now, USD/CAD appears to be forming a descending channel on its 4-hour time frame as it made a few lower lows and a couple of lower highs. Of course the pair needs to make another lower high to confirm the channel formation and, after bouncing from the bottom around 1.0100, it looks ready to test the top of the falling range again. Stochastic is moving upwards, which means that dollar bulls could have enough energy to push this pair higher.

AUD/USD: Daily

AUD/USD: Daily Chart

Check out how the technical signals line up on this AUD/USD daily chart! Not only has the pair formed a few reversal candlesticks right on the 50% Fibonacci retracement level, it also made a bearish divergence as well. On top of that, the pair seems to be finding resistance at a former support level. Oh, and did I mention that the 50% Fib lines up with the 1.0250 major psychological level? If you’re planning to play this setup, make sure you check out the 9 Rules for Trading Divergences first!

NZD/USD: 1-hour

NZD/USD: 1-hour Chart

The Kiwi sure knows how to keep it tight! NZD/USD has been stuck inside a tight range for quite a while now, as it bounced from support around .8015 and found resistance near .8060. Stochastic is currently on middle ground, which means it’s a toss up between the Kiwi bears and bulls. Although the range has been holding like a boss the entire week, there’s always a chance that we could see a strong breakout either way later on. Keep an eye out for possible fakeouts, too!

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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