Daily Chart Art – October 12, 2011

EUR/USD: 4-hour

EUR/USD 4-hour Chart

Somebody holler at Huck and tell her about EUR/USD‘s 4-hour chart! The pair is chillin’ at a 100-pip range after encountering resistance at 1.3700, but something tells me that we’re about to see some action. Is the range a completion of a double top, or is it a bullish rectangle signaling a pause in the euro’s rally? A short below the 1.3600 support is a good idea if you decide to follow the overbought Stochastic signal, but you can also buy the pair at the break of the 1.3700 resistance.

USD/CAD: 4-hour

USD/CAD 4-hour Chart

Now here’s something that Happy Pip, our lady comdoll trader, would like. USD/CAD is hanging out at the 1.0300 support near a rising trendline on the 4-hour chart, and it looks like Stochastic is also sporting a bullish signal. The bulls can place a tight stop below the trendline and aim for the possible resistance at 1.0500, while the dollar bears can wait and see if a head and shoulder formation plays out at the 1.0500 major psychological handle.

GBP/JPY: 4-hour

GBP/JPY 4-hour Chart

My last setup for the day is my shout out to my homie Cyclopip who still owes me beer for losing a bet last week. GBP/JPY seems to have found resistance at the 120.00 handle and is heading fast towards a possible mid-channel support just below 119.00. You can wait for an oversold signal at 119.00 if you’re bullish on the pair, but you can also short at market and aim for 117.00 if you’re one of them pound bears.

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.

  • snoblondrei

    absolutely opposite side of right move, but i luv your analysis:)