Since many of you probably have a long position on the pair, I thought I'd put up the daily chart of USD/JPY. As you can see, there are some very interesting developments on the pair. Firstly, the pair is currently testing a major resistance level. Secondly, yesterday's candle was a clear long-legged doji. And lastly, the Stochastic indicates that conditions are overbought. These signals seem to indicate that the pair's rally is severely overdone, and price could soon retrace. Be careful!
AUD/USD: 1-hour
Surf's up, dudes and dudettes! It appears that AUD/USD is riding fast on a rising trend channel on the 1-hour chart. With the Stochastic showing conditions are oversold and price finding support just above the bottom of the channel, there's a chance we could see price rally and retest the top of the channel. Watch this pair closely in case of another bullish push!
USD/CHF: 4-hour
USD/CHF bears, beware! Yesterday, the pair found some significant support at the .9100 handle and with the Stochastic moving out of oversold territory, it seems that a move up is likely to happen. If you choose to jump in and price continues to rally, the .9200 and .9300 major psychological levels are the pair's next probable stops.
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.
On Tuesday February 21st, 2012 at 04:01AM by beebolbod - Like - 0 People
A few observations on your charts....
USDJPY - the MAJOR barrier to the upside is the BRN of 80. We've passed the supply levels of Jul and Oct and now enter an interesting phase. I'm long from 78.42 so i'm hoping we go up further! I think if we dont get a violent reaction at 80 we will go higher.
AUDUSD - a bullish 4H pinbar formed recently and i passed on it. We might go up but i dont like buying high, and we're already very high on this pair. Around 1.0765 is a tough level to breach and your chart shows us buying right into that. It's been rejected since end Jan more or less so i'd be wary here.
USDCHF - .91 has acted as support since Jan and is now seemingly breaking down. A 4H bearish outside bar straddles this level so short is possible from here. Your line of support should be horizontal i think.
Good luck with all trades!!!
On Tuesday February 21st, 2012 at 07:14AM by beebolbod - Like - 0 People
91 is holding up for now! The bearish bar didn't break.... let's see how it gets on.
On Thursday February 23rd, 2012 at 08:52AM by beebolbod - Like - 0 People
Seems 91 broke after all. If we see a close/retrace back up to 91 a short is possible.
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