Daily Chart Art – November 8, 2010

EUR/USD: 4-hour

EUR/USD Chart

Let’s kick this week off with a rising trend line! Take a peek at the 4-hour chart of EUR/USD and you’ll see it’s been on an uptrend the past couple of weeks. Now seems like a good time to buy the pair cheap as price has pulled back to find support at a former resistance level. The Stochastic seems to be in agreement with euro bulls. Not only is it signaling overselling, but it’s also making “lower lows” while price makes “higher lows”… A bullish divergence! If you want to go long with EUR/USD, look to retest the previous high. But if you’re feeling bearish, it would be best to wait for a break of the rising trend line before entering the market.

EUR/CHF: 4-hour

EUR/CHF Chart

We’ve got another euro pair on deck today. EUR/CHF looks like it’s in a prime position to rally after bouncing off a resistance-turned-support level. If you’re thinking of buying the pair, you may want to aim for a retest of 1.3800. On the other hand, if you think that the EUR/CHF’s recent rally is just a dead cat bounce and the pair is ultimately headed lower, it might be best to wait for price to break support before selling.

USD/CHF: 4-hour

USD/CHF Chart

After breaking through its short-term uptrend line and staging a massive fall, it seems like USD/CHF is starting to retrace some of its losses. As you can see from the 4-hour chart, the pair found some support at the .9550 and is crawling its way back up. With the Stochastic showing just moving out of oversold territory and pointing upward, we may see price test some important Fibonacci retracement levels soon. Keep an eye out on the .9700 handle forex homies, as it could be the level that the bears are watching to jump in short again!

  • bmduncan33

    I like your analysis. Do you host a forum or have your written anything that summarizes your trading style?

  • bmduncan33

    I like your analysis. Do you host a forum or have your written anything that summarizes your trading style?