Daily Chart Art – March 9, 2011

EUR/USD: 4-hour

EUR/USD Chart

Yo FX homies! Won’t you rise and shine for that rising trend line on EUR/USD? But wait! It looks like it has already been broken! Hmmm, if there are enough sellers in the market, we may just see the pair tumble like rubble all the way down to 1.3700. Don’t get too crazy about shorting the pair yet though, because if you stick some Fibs on the chart, it looks like the pair is just chillin’ like ice cream fillin’ at the 50% Fib level. Stochastic is also sporting a hidden bullish divergence which could be a signal that the pair is on its way back up to 1.4000. So be careful, ayt?

AUD/USD: Daily

NZD/USD Chart

Next up, I’ve got a sexy lookin’ setup on AUD/USD. Over the past couple of months, AUD/USD trading has begun crawling into a tight ascending triangle, meaning we could see a breakout soon. Which side do I think it’ll break? Well, it don’t really matter – the point is we can make some mad pips if it does break out! For a top side break, look for a solid candle close above 1.0300 as a sign that resistance is truly broken. For a break to the downside, look for a close below the recent lows before going short. Either way, be ready playaz!

USD/CHF: 4-hour

USD/CHF Chart

Now, let’s zoom in on USD/CHF and get dibs on what looks like an inverse head and shoulders pattern. You cool cats who have gone through our super awesome School of Pipsology probably know that this is considered as a bullish reversal pattern. So hold on tight if you’re planning to join the bull camp because the pair may just skyrocket all the way to .9500! Just don’t get too carried away. Note that Stochastic is already in the overbought area and could mean that USD/CHF is about to fall back down to .9250.

  • Pipster4lyphe

    U know what…I played the USDCHF setup…and felt nice that I was up over 90 pips….set a trailing stop of 65 pips…woke up saw that it was down a little…and by the time I look I was stopped out at my trailing stop….I felt bad…cause I wanted to close the trade based on ur analysis the previous day/ but went against my intuition…as I felt good that the candle had closed above the break of the neck of the dbl top formation! So good call…none the less!

  • Pipster4lyphe

    U know what…I played the USDCHF setup…and felt nice that I was up over 90 pips….set a trailing stop of 65 pips…woke up saw that it was down a little…and by the time I look I was stopped out at my trailing stop….I felt bad…cause I wanted to close the trade based on ur analysis the previous day/ but went against my intuition…as I felt good that the candle had closed above the break of the neck of the dbl top formation! So good call…none the less!