Daily Chart Art – November 7, 2012

EUR/USD: 4-hour

EUR/USD 4-Hour Chart

Let’s start off with this potential retracement play on EUR/USD. After successfully breaking below the 1.2900 major psychological level, the pair seems ready to pull back before heading any lower. Using the handy-dandy Fibonacci retracement tool, I noticed that the 50% Fib lines up with the former support at 1.2900. Pretty cool, huh? Stochastic is still moving up, which means that euro bulls could take EUR/USD all the way up to that psychological level for now.

USD/CAD: 4-hour

USD/CAD 4-Hour Chart

If you’re looking for a trend-following setup, check out this rising channel on USD/CAD that Happy Pip is also watching. The pair has been climbing steadily inside the channel for the past few weeks and appears ready to test the bottom. At the same time, stochastic is making its way into the oversold zone, suggesting that Loonie bears could pounce soon.

GBP/JPY: 4-hour

GBP/JPY 4-Hour Chart

One top, two tops! That’s a double top formation on GBP/JPY’s 4-hour time frame! My chart patterns cheat sheet says that this is a reversal signal, hinting that a downtrend could take place later on. However, it seems that the pair hasn’t broken below the neckline around 127.50 yet while stochastic just made its way out of the oversold zone. This one’s giving mixed signals so y’all should wait for additional confirmation on where guppy could be headed!

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.

1 comment

  1. Chuka Madu

    GJ looks set to fall into 125 .50 area before rallying massively. I doubt the long idea at this time. I am now short audjpy at 83.81 with stop at 84.11
    I believe while the dollar loses ground, the charts appear to show that the yen could be gaining ground

    Reply

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