Daily Chart Art – June 7, 2012

EUR/USD: Daily

EUR/USD Daily Chart

If you’re still waiting to short the euro, then this setup is for you! On EUR/USD‘s daily chart is a potential resistance at the Fibonacci retracement levels. Not only is it near a previous support zone, but the area is also just below the 1.3000 major psychological handle. Stochastic just left the oversold zone though, so you might want to let this play out for a while.

GBP/USD: 1-hour

GBP/USD 1-hour Chart

After breaking above the triangle that I pointed out yesterday, Cable is once again consolidating at a possible bullish pennant. If you haven’t done your reading at the School of Pipsology, then you should know that pennants usually signal continuation for a trend. Are the pound bulls ready for another push? Make sure you have your stop losses ready if you’re planning on day trading this setup!

USD/CHF: Daily

USD/CHF Daily Chart

Last up for today is another Fib retracement setup, this time on USD/CHF. If the pair breaks below its current levels (.9550), then the next possible support area is around .9300. The level has not only served as a good support and resistance area in the past, but it’s also near the 61.8% Fib retracement. Do you think that the pair will fall all the way to the .9300 handle? Give a holla, brotha!

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.

  • Vipul Kapur

    How can you say that EURUSD and USDCHF will both fall? They are exactly inverse of each other.

    • Alfin Fransiscus

      He is not saying both will fall now. He is saying EURUSD probably will fall AFTER hitting that fib retracement. And as for USDCHF, it is probably falling NOW (if it is, based on the correlation EURUSD will go up to hit that retracement).

      So the correlation is still intact here.