Daily Chart Art – November 15, 2011

EUR/CHF: 4-hour

EUR/CHF 4-hour Chart

If you’re a firm believer in the saying “What goes up must come down,” I suggest you keep an eye on EUR/CHF! It started the week strong and retested a former resistance area at 1.2450 yesterday, but it will need a big push from euro bulls for it to forge new highs. If you don’t think the pair will continue defying gravity, you may want to consider selling near 1.2450. There seems to be plenty of room for a downside move considering that the weekend gap still hasn’t closed. Just remember to wait for confirmation from candlestick patterns before you act!

AUD/USD: 1-hour

AUD/USD 1-hour Chart

AUD/USD looks as though it’s getting ready to revisit the falling trend line on the 1-hour chart! More importantly, from where I’m standing, the pair appears to be on pace to hit it near the 1.0300 major psychological handle. Since this level acted as support in the past, there’s a chance that it’ll act as an area of interest again. Looks like a valid setup to me! If you’ve made up your mind on shorting this pair, just be sure to set your stop loss above the falling trend line!

NZD/USD: 4-hour

NZD/USD 4-hour Chart

Last but not least, we have this sweet and simple setup on NZD/USD. The way I see it, you can play it two ways. You can either play a bounce off .7750 and hope for a double bottom formation to form, or you can wait for a clean break of this level and sell the pair until it hits the next support zone. Whichever way you decide to trade it, be sure to play it safe by practicing risk management!

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.