Daily Chart Art – June 24, 2011

EUR/USD:1-hour

EUR/USD 1-hour Chart

Shabam! After slipping below 1.4150 yesterday, it looks like the euro was able to hustle some muscle and bounce back up to 1.4250. Will we see an epic comeback from the bulls to push EUR/USD all the way up to 1.4400? Um, I wouldn’t be so sure of that yet. Using the Fibonacci retracement tool, it could be that what we’re seeing now is nothing more than just a pullback. With Stochastic already in the overbought territory, showing a hidden bearish divergence, bears could pounce in and push the pair back down to 1.4150.

USD/CAD: 4-hour

USD/CAD 4-hour Chart

For all you Loonie lovers out there, here’s a setup that might tickle your fancy. USD/CAD is cruisin’ up the charts on that ascending channel. But it looks like the pair is stalling in the middle, testing resistance at the .9800 major psychological handle. If you’re planning to root for the Loonie, watch out for reversal candlesticks around the area as they may signal that USD/CAD is on its way back to .9700. On the other hand, if you think the dollar’s rally is still not over, keep an eye out for a strong break above .9800 as we may just see the pair skyrocket to its most recent high!

GBP/JPY: 4-hour

GBP/JPY 4-hour Chart

Last on our canvas today is Guppy on the 4-hour timeframe. With Stochastic already indicating oversold conditions, I am inclined to think that perhaps we’ll see the yen give up some of its gains soon. Keep tabs on the area just below 130.00 where the 38.2% Fib level and falling trend line coincide nicely. If resistance there holds, GBP/JPY may just tumble to support at 128.50. However, if it doesn’t, the pair could rally to 132.00!

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!