USD/CAD: 4-hour
Ah, hah! Don’t look now, but I think we may just see USD/CAD pull off an R. Kelly and bounce, bounce, bounce, bounce again at the support area at 1.0100. Aside from Stochastic showing upward momentum, easing out of the oversold area, a bullish marubozu just formed following a doji. If there are enough dollar bulls in the market, it’s possible for the pair to rally back up to 1.0250. But be wary, all right? A close below yesterday’s low at 1.0070 may signal that the pair could be headed back down to 1.0090.
USD/CHF: Daily
It looks like the Swissy has been hot, hot, hot on the charts this week. But what’s this? Looking at the daily timeframe, we see that USD/CHF is already at a resistance-turned-support area, trading around .9300. Stochastic is also almost at the oversold territory. Does this mean the Swissy’s run will cool down soon? Maybe. But I’d wait for reversal candlesticks to materialize first before I jump to that conclusion. Who knows, the pair could still close below .9300 and extend its drop to .9100.
AUD/USD: 1-hour
Finally, here’s AUD/USD sportin’ a sexy ascending triangle on the 1-hour timeframe. If you’ve gone to the School of Pipsology, then you’re a cool cat who probably knows that this is usually considered a bullish chart pattern. So if you’re looking to go long on the pair, it might be a good idea to watch out for a strong bullish break above the resistance area at 1.0440. As for those of you who feel like rooting for the dollar and not the Aussie, be on your toes for the pair to trade lower than yesterday’s low at 1.0370 as this could signal that AUD/USD is on its way to 1.0300.
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.
