Daily Chart Art – June 4, 2012

EUR/USD: 4-hour

EUR/USD 4-hour Chart

Man, oh man! It seems like the euro bears are running out of steam and might need to take a breather from the recent sell-off. The pair is currently making its way back to 1.2500, a level that has served as support before. When I drew the Fibonacci retracement levels, I spotted that the 1.2500 level also lines up nicely with the 38.2% Fib. Could the bears start selling again there?

GBP/USD: Weekly

GBP/USD Weekly Chart

With how strongly the dollar has been performing, sometimes you just can’t help but look for signs of reversal. If you look at Cable’s weekly chart, this is exactly what you’ll see. Cable, after dropping for FIVE consecutive weeks, is facing a major support level at the 1.5300 major psychological level. The pair hasn’t shown any signs of reversal yet but the Stochastic shows that conditions are oversold, hinting that the bears could be running out of steam.

EUR/CAD: 4-hour

EUR/CAD 4-hour Chart

I spy with my pippin’ eye a falling trend line on EUR/CAD! Sellers had been in control of this pair for a long time now, but buyers have been putting up a fight in the last few days. Will the falling trend line be tested again? If it does, then the bears and other late sellers could have a chance to jump in and dominate!

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.

  • Tim Endersby

    cheers for the update! anyone got any thoughts on the audusd short term?

    • robertok

      I think we might see a range bound market in the beginning of the week for the aussie… stuck between .9700/50 and .9600 then a break to the down side later on in the week