Daily Chart Art – June 5, 2012

USD/CHF: 4-hour

USD/CHF 4-hour Chart

What better way to start the day than trading a Fib-divergence combo? USD/CHF is fast approaching the .9550 area, which is not only near the 50% and 61.8% Fibs, but is also a former resistance area for the pair. Not only that, but a bullish divergence and an oversold Stochastic signal are supporting a long trade! Will the bulls hustle enough muscle to send the pair back up? Keep a close eye on this one!

AUD/USD: 4-hour

AUD/USD 4-hour Chart

If you’re like our home girl Happy Pip and you love trading ‘em comdolls, then this setup is for you! AUD/USD is bouncing along a falling channel on the 4-hour chart, and it looks like it’s heading towards a possible resistance at .9800. The Stochastic signals haven’t crossed yet, so the pair still has some room to breathe. Do you think the pair will reach .9800 today? Make sure you have your trading plan ready if it does!

NZD/USD: 4-hour

NZD/USD 4-hour Chart

Last up for today is a nice breakout play. After falling sharply last week, it looks like the Kiwi bulls and bears are playing tug-o-pips on a symmetrical triangle on NZD/USD‘s 4-hour chart. Are we in for a reversal, or are the bears simply taking a breather? Read up on symmetrical triangles if you wanna trade this setup!

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.

  • emeka george

    How do one read the candle sticks? because they say wait until one candle stick form,what of the many others?please someone should help me

  • emeka george

    Hey folks, i can’t read charts, i dn’t understand when to enter trade and exit,pls help

    • bigpippin

      Sup, emeka!

      Why don’t you start by getting comfortable with reading candlesticks? Here’s a page that might help you out: http://www.babypips.com/school