Daily Chart Art – June 2, 2011

USD/CHF 4-hour

USD/CHF 4-hour chart

The Swissy’s on a roll, huh? But wait! With Stochastic making higher lows while price is making lower lows, I think I’m seeing a bullish divergence on the 4-hour chart of USD/CHF. Uh oh… Could this be the end of the road for the Swissy? Hmmm, I wouldn’t jump to that conclusion just yet. Keep an eye out for the previous support area around .8600 and see if the pair will find resistance at the 38.2% Fibonacci retracement level. However, keep in mind that a strong break above the psychological handle could mean that the dollar will hustle all the way up to .8800.

USD/JPY 4-hour

USD/JPY 4-hour chart

Now let’s move on to USD/JPY in the 4-hour time frame. Lower highs, higher lows… You know what it is. No, it ain’t black and yellow. Heck, I’m no Wiz Khalifa ya know. Anyway, according to the oh-so awesome School of Pipsology, what we’re seeing could be a symmetrical triangle in the making. Watch out for a break above the falling trend line at around 81.50 as this could signal that USD/JPY would rally up to its previous high. However, if resistance there holds, we could see the pair test support at the rising trend line once more.

USD/CAD 4-hour

USD/CAD 4-hour chart

Remember that rising trend line I pointed out on USD/CAD a couple of days ago? Well, it seems like dollar bulls came back to life and pushed the pair back up to .9750. Now it looks like it’s testing the trend line for resistance. If there are enough traders who’ll go loco for the Loonie, we may just see USD/CAD tumble to support at .9650. Don’t get too excited shorting the pair though. It may be better to wait for candlesticks first for confirmation. Who knows, there could still be enough dollar lovin’ to go around and USD/CAD could go back up to .9800.

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 Economic Roundup. Check him out, playas!

  • Malon660

    the swissy setup looks awesome i would not root for a reversal though because of the fundies