Daily Chart Art – August 1, 2011

EUR/USD: 4-hour

EUR/USD 4-hour Chart

Is it time to short EUR/USD? The pair seems to be having a hard time getting past the 1.4400 resistance on the 4-hour chart, especially since the level is lining up nicely with the 61.8% Fib. I wouldn’t be too crazy on shorting the pair though, as the rising trendline is still intact and Stochastic hasn’t reached the overbought region. An entry below the trendline might be a good spot for long-term euro bears, but the bulls can also wait for a retracement around the 1.4300 area.

GBP/USD: 4-hour

GBP/USD 4-hour Chart

Next up, we have a potential short Cable trade. A bearish divergence, nearly overbought Stochastic, and a possible resistance at 1.6450 are supporting a short trade idea right now. Of course, we’ll never know when them bulls are going to attack. 1.6300 might be a sweet profit target if you’re bearish on the pair, while a break above the minor psychological handle might be a good place to go bullish on the pound.

AUD/JPY: Daily

AUD/JPY Daily Chart

Last but definitely not the least is a channel play on AUD/JPY. Not only is the pair hanging around the top of a descending channel, it also looks like the level is lined up with the 61.8% Fib. Stochastic hasn’t quite reached the overbought region just yet, so you guys gotta stay on your toes on this one, aight? The bulls might still push the pair all the way to 88.00 if the channel breaks.

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. Check him out, playas!

  • Nbhat

    cable is a short and is down 40 pips on bad UK figures. EUR/usd also a mild short as euro has default problems whereas US avoids default.