Daily Chart Art – April 30, 2012

USD/CAD: 4-hour

USD/CAD 4-hour Chart

Hey Happy Pip! I know you’ve been playing ranges lately, but what about this divergence setup on USD/CAD? Price just registered lower lows but Stochastic posted higher lows! If you’re more of the patient type, you can wait for a bullish maruobozu candle before putting up a long position!

EUR/USD: Daily

EUR/USD Daily Chart

Boy, I bet Huck is just gonna love this setup on EUR/USD! It’s got not one, not two, not three, but FOUR signals lining up! First, EUR/USD is now testing a falling trend line. Second, Stochastic is currently deep in overbought territory and is about to crossover. Third, price is currently finding resistance at the 61.8% Fibonacci level. And fourth, we just got a really nice doji form! If that ain’t enough for you, then maybe you’re better off waiting for a bearish red candle as more confirmation to go short!

GBP/JPY: 1-hour

GBP/JPY 1-hour Chart

Lastly, here’s a setup for my man…err, monster… Cyclopip! GBP/JPY has been stuck in a tight range of about 130 pips and is currently trading near the bottom of the range. I’d probably wait for a solid retest of the support level before establishing any long positions. Of course, if we see a candle close below 130.40, it may signal that a breakout is in the cards!

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.

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