Daily Chart Art – June 20, 2011

NZD/USD: 4-hour

NZD/USD 4-hour Chart

The Kiwi has been getting a lot of buzz in the Comdoll section of the forums so I thought I’d give my two cents on this pair. As Happy Pip pointed out, the pair already broke below support around .8120 but is showing signs of a retracement. I put up some Fibs on the 1-hour chart and noticed that NZD/USD just bounced after hitting the 61.8% level, which is right smack in line with the former support level. If you’re gonna play this retracement, you might wanna check out what other Kiwi traders think, too!

USD/CAD: 4-hour

USD/CAD 4-hour Chart

Have you been watching the Loonie lately? If you have, you probably noticed that the pair found resistance at the top of the rising channel, which coincides with the .9900 handle. But if you missed this move, don’t fret! There could still be a chance to short this pair since it seems to be aiming for the bottom of the channel around .9700. Stochastic is crawling towards the oversold area, which means that sellers could still be in control.

AUD/USD: 1-hour

AUD/USD 1-hour Chart

If you’re looking for a shorter-term trade, you might find this Aussie setup to your liking. The pair has been moving inside a falling channel for the past couple of weeks and looks poised to test the top of the range. This is in line with the 1.0650 minor psychological level, which could act as strong resistance. However, the pair’s drop could take place before it even reaches the top of the channel. That’s because stochastic is already pointing downwards, signaling that Aussie bears still have the upper hand.

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!