Daily Chart Art – June 19, 2012

EUR/JPY: 4-hour

EUR/JPY 4-hour Chart

Yo Cyclopip, here’s a setup you might wanna consider! EUR/JPY seems be consolidating now, as its finding tough resistance at 100.80, while we’re seeing slightly higher lows. If this keeps up, it may begin to start looking like an ascending triangle! For now, you can consider scalping off the resistance or support lines, but if we see a candle close above or below those levels, it may be time to reverse position and ride the breakout!

EUR/USD: Daily

EUR/USD Daily Chart

This one’s for my homegirl Huck! If you check out the daily chart of EUR/USD, you’ll see that yesterday’s candle formed a bearish engulfing candle. Not only that, but it formed right at the 38.2% Fibonacci level and Stochastic just crossed out of overbought territory! Are the bears gearing up for another strong down move? If you’re the patient type, you can consider waiting for today’s candle to close to give you more confirmation on whether to go short or not.

USD/CAD: 4-hour

USD/CAD 4-hour Chart

Lastly, here’s a setup that will surely put a smile on Happy Pip‘s face! After going on a massive rally in May, USD/CAD seems to have run out of steam as it’s formed a head and shoulders formation. Currently, the pair is finding strong support at the neckline. However, take note of the consecutive lower highs after the second shoulder. This could indicate that buying support is dying down and a break of the neckline is imminent. A solid candle close below 1.0200 may just lead to a steep drop all the way back down to parity!

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.

1 comment

  1. Trading Market Online

    Euro made a surprise today. After a selloff we see a true bullish market. Sometimes it is so hard to understand the logic of these moves. One thing eur/usd pleased me is how it bounced off the support trend line between 1st and 13th of June

    Reply

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