Daily Chart Art – June 15, 2012

USD/CAD: 4-hour

USD/CAD 4-hour Chart

Feast your eyes on this head and shoulders pattern on USD/CAD! It’s about as clean as it gets, homies. As we learned from the School of Pipsology, this pattern is a trend reversal formation, which means the pair may soon make its way down the charts. Just keep your eyes on the neckline at around 1.0215, as this could be the make-or-break level for USD/CAD!

NZD/USD: 4-hour

NZD/USD 4-hour Chart

The Kiwi has been on a tear in the past few days, which makes me wonder how long this NZD/USD rally will last! From the looks of it, there’s a chance it may come to an end soon as it appears as though a rising wedge has formed. Remember, rising wedges usually break to the downside, so you might want to stay on your toes for sharp moves down!

AUD/USD: 1-hour

AUD/USD 1-hour Chart

Lastly, we revisit the AUD/USD range that we featured a couple of days ago. As you can see, Aussie bulls finally managed to break above parity, which had been a stubborn resistance level. Does this mean we can expect more gains from AUD/USD? Well, if the pair can continue hanging above parity, or even use it as support, it may be a sign that the market is prepared to take it to new heights!

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.

  • Mcaochuka

    is current Usdcad really a Head and Shoulder or a massive bullish Flag?
    I very much doubt the H&S theory. 

  • Mcaochuka

    If anything at all, and I am sure there is something great, USDCAD H4 currently runs a clean flat bottom descending triangle. No doubt 1.0200 is a pivotal price now. Occuring after a strong bullish move well suggests a big bear-bound break is to be primarily expected. But we know that this could also be a bullish continuation especially as price is currently at the base.  Even your stochastic shows rates are still at oversold region! We should look to subsequent candlesticks for guide at this level.