Daily Chart Art – November 7, 2011

NZD/USD: 1-hour

NZD/USD Hourly Chart

If you’re a big fan of comdolls like Happy Pip, this sexy setup on NZD/USD might just tickle your fancy! On the 1-hour time frame, it looks like the pair has formed an inverse head and shoulders. According to the School of Pipsology, this chart pattern is usually considered bullish which means that we could see NZD/USD rally all the way back up to its previous high around .8250. However, don’t get too excited going long on the pair just yet. Take note that price is currently testing the 38.2% Fibonacci retracement level and Stochastic already indicates overbought conditions. If resistance at the level holds, the pair could tumble to around .7800.

EUR/USD: 1-hour

EUR/USD Hourly Chart

Surf’s up, dude! It appears that over the past few days, EUR/USD’s movement has formed a nice and clear rising channel. If trading ranges is your kind of thing, then look for possible longs at the bottom of the channel and shorts at the top of the channel. For long trades, the 1.3750 minor psychological handle is a price area to jump in. On the other hand, for those who have a short bias, 1.3950 is a decent level to short.

EUR/CHF: 1-hour

EUR/CHF Hourly Chart

If you’re a fan of trading weekend gaps, then this setup is for you! EUR/CHF opened the week right above the top of the descending channel on the 1-hour chart with the overbought Stochastic supporting a short trade. The 1.2200-1.2250 area at the top of the channel might be a good resistance-turned-support level if the pair closes the gap. Just be careful on trading this one, will you? Some pairs take days, if not weeks, to fill their weekend gaps!

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.

  • Rtejada29

    made 64 pips on eur/usd..Although your entry level was rather high, I entered the trade at 1.3710 and exited at 1.3774..

  • Oscar

    so much for the rising channel on eur/usd!

  • Adrian Salmon

    Seems you were spot on with EUR/CHF :-).  Didnt catch the ove thou :-(