Daily Chart Art – June 11, 2012

GBP/USD: 1-hour

GBP/USD 1-hour Chart

If you’re bearish on the pound, then this could be the setup for you! GBP/USD seems to be forming a rising channel on its 1-hour time frame as the pair made higher lows and a couple of higher highs. At the same time, stochastic is already in the overbought zone with a potential bearish divergence to boot! But until the oscillator crosses downwards, bulls could still take the pair to the top of the channel right around the 1.5600 major psychological resistance. Keep an eye out for a potential reversal in that area!

EUR/JPY: 4-hour

EUR/JPY 4-hour Chart

EUR/JPY spent more than week erasing most of its previous losses, but was that just a huge retracement? Looking at the 4-hour time frame seems to suggest so, as the pair encountered resistance around the 61.8% Fibonacci retracement level. That area is also close to the 100.00 major psychological level, which seems to be keeping EUR/JPY from heading any higher. Stochastic just crawled out of the overbought region but seems to be shifting course yet again. This could be a make or break, fellas!

USD/CAD: 4-hour

USD/CAD 4-hour Chart

Last but not least, here’s a basic chart pattern on USD/CAD’s 4-hour time frame. The pair seems to be exhausted with its recent rallies since it formed a head and shoulders pattern, a classic reversal formation. However, the pair has yet to break below the neckline around 1.0200 before a downtrend could resume. Stochastic is still pointing down, suggesting that USD/CAD has room to drop, but former support at the 1.0200 area could be a tough one to crack!

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.

  • Robertok

    Am stalking the Loonie today for an entry short between the 1.0280 level and the 1.3000 level when the gap down closes later