Daily Chart Art – March 1, 2012

USD/CAD: 4-hour

USD/CAD 4-hour Chart

The Canadian dollar went cray-cray yesterday, and it took USD/CAD for a long, fast ride down the charts. But now, it seems to be settling down, as its chilling right below the .9900 handle. Keep an eye on this pair because a shallow retracement could see USD/CAD test a former support area at .9930, and that could give you the opportunity to catch the pair as it resumes its fall.

USD/CHF: 1-hour

USD/CHF 1-hour Chart

If you ain’t in the mood to short the dollar, then consider this setup on USD/CHF. Heck, it’s practically a mirror image of the setup above! The .9000 handle was once a strong resistance level, and it actually took the market three tries before it broke through this area. Now that price is turning down from .9050, it’s possible that the pair will revisit .9000. If and when that happens, look for this level to act as support, especially since it falls in Fib territory.

AUD/USD: 1-hour

AUD/USD 1-hour Chart

Rounding up today’s terrific trio is AUD/USD with a sweet rising channel. The pair just recently bounced off the channel’s rising support and Stochastic is turning up from oversold territory. These could be interpreted as signs that the pair is about to start another bull run. Look for the pair to retest the previous high at around 1.0850, but also be on the lookout for any breakout plays that may arise. Good luck and good trading, homies!

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.

  • eka

    A quick question – on the AUD/USD 1 HR Chart is it hidden bullish divergence I can see on the rising channel?

  • Victor @Pipscovery

    AUD on 4hr formed a big Shooting star like candle and it is at 1.08 as well. Considering this I think we may see bearish movement and perhaps a break below on the 1hr channel line.

    • Mcaochuka

       Perfect observation. We have currently a fakey bearish rejection pin off recent highs and should see Range low before any bullish resumption

      • Victor @Pipscovery

        It would be nice to post the outcome of analysis, perhaps a few days later. That way you can establish more trust in the analysis you post.

        My 2 cents.

  • Mcaochuka

    AU is bearish until 1.06 or little lower. The major play is the Daily Bearish channel