Daily Chart Art – June 17, 2011

EUR/USD: 4-hour

EUR/USD 4-hour Chart

Let’s start off the day with a look at the most traded currency pair, EUR/USD. After it had topped out at the 1.4500 major psychological level last week, the pair has been on a strong downtrend. Every rally has been held back by a very clear falling trend line resistance. If price manages to make its way between the 50% and 61.8% Fibonacci retracement levels and retest the falling trend line resistance, we just may see the bears jump in again and ride the trend!

GBP/USD: 1-hour

GBP/USD 1-hour Chart

Boy did GBP/USD speed into the bear lane fast! But wait, it looks like it stopped short of trading past support at 1.6100. Uh oh… Is this a reversal in the making? Maybe. However, I wouldn’t jump to that conclusion just yet. Take note that Stochastic is already in the overbought area which could be a sign that the pair would head back down soon. Keep an eye out for the previous support and resistance area around 1.6200. Notice how the 38.2% Fibonacci retracement level lines up nicely with the psychological handle? We could see the pair pull back to this area before it continues to trade lower. But be on your toes for a strong break above the level as this could mean that the pair would rally back up to 1.6400!

USD/CAD: 4-hour

USD/CAD 4-hour Chart

Breakout! USD/CAD bulls finally managed to flex their muscles in yesterday’s trading session as they took the pair above the very strong resistance at .9800. Does this mean we’ll be seeing more gains for USD/CAD? Since this pair loves to range, I don’t think we’ll be seeing more gains for the pair! For now, The levels to watch here are .9800, which is a potential resistance-turned-support, and resistance at .9900.

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!