Daily Chart Art – April 27, 2012

EUR/USD: 4-hour

EUR/USD 4-hour Chart

First up is everyone’s favorite pair, EUR/USD! The pair appears to be forming a rising wedge, as it has consistently been forming higher lows and higher highs while at the same time consolidating. If you ask me, this playa looks like its gonna breakout fellas, so y’all better be ready when it happens! Watch out for solid marubozu candles to form either above or below the support and resistance lines as signs that the wedge is breaking!

USD/CHF: 4-hour

USD/CHF Daily Chart

Next up lets zoom out a bit and take a look at the daily chart of the Swissy. USD/CHF is currently trading within a symmetrical triangle, and just bounced off the rising support line yesterday. With Stochastic now crossing out of oversold territory, look for the bulls to take over. For now, I suggest waiting for a daily candle close above or below the triangle as a sign that a breakout is in the cards.

GBP/USD: 4-hour

GBP/USD 4-hour Chart

Lastly, here’s a counter-trend setup on GBP/USD. The pair has been on a meteoric rise the past 10 days, but could all that be coming to an end soon? Bearish divergence has formed and the pair appears to be stalling at the 1.6200 handle. It might be time to think about loading up on some short positions!

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.