Daily Chart Art – May 24, 2011

USD/CHF Daily

USD/CHF daily chart

Swissy bears certainly didn’t wait long to retest the falling resistance of the descending channel on USD/CHF! They’re at it again! Is this a chance to buy the Swissy at a cheap price? Price just formed a higher low and is just chillin’ below .8900 right now. But should a bullish marubozu close above this level, it could mean that the bears will stay in control for the rest of the week.

EUR/CHF Daily

EUR/CHF daily chart

STOP! It’s HAMMER TIME! A beautiful hammer just formed on the daily chart of EUR/CHF, right on a critical support level. As the School of Pipsology teaches us, a hammer is a bullish reversal candlestick, so it could be signaling a further rise in EUR/CHF. But just in case you want to play it safe, you may want to wait until today’s daily candlestick closes before you commit to a position. Who knows, the pair may just break downwards today!

GBP/CHF 1-hour

GBP/CHF 1-hour chart

Bringing in the rear for the Swissy pairs is GBP/CHF with a simple trend line setup! This bad boy has clearly been trending downwards in the past couple of weeks, with a falling trend line directing traffic. Will it hold again? It’s been able to cap off gains in GBP/CHF quite well so far. But you may want to wait until Stochastic hits overbought territory before you jump aboard the bear train.

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 Economic Roundup. Check him out, playas!

  • ケー ちゃん

    Whoaa…I should’ve short on USD/CHF on that day…