Daily Chart Art – August 16, 2011

EUR/JPY: 4-hour

EUR/JPY 4-hour Chart

Aha! It seems like bears are revving up to send EUR/JPY crashin’ like the Maybach my homeboys Kanye and Jay-Z tore down in their Otis music video. The pair has formed reversal candles around the 111.00 major psychological handle which is also the 50% Fibonacci retracement level. Making the pair even more enticing for sellers is Stochastic, sporting what looks like a bearish divergence. Does this mean we’re gonna see EUR/JPY trade all the way down to 108.00? Maybe. But be wary of strong bullish candlesticks above 111.00 because they may hint that the pair is on its way back up to 114.00!

GBP/USD: 4-hour

GBP/USD 4-hour Chart

If you ain’t like Cyclopip who’s a big fan of crosses, perhaps GBP/USD will tickle your fancy. Similar to EUR/JPY, the pair is also testing resistance at a major psychological handle and Stochastic is showing a bearish divergence. Do you think 1.6400 will hold? Or do you think there are enough buyers left to push GBP/USD back up to 1.6450? Whatever your take is, make sure you keep tabs on ’em candlesticks. Have your cheat sheets ready!

NZD/USD: 1-hour

NZD/USD Hourly Chart

For all you cool cats who feel like going long today, here’s a nice bullish setup for ya! NZD/USD seems to be sporting an ascending triangle, finding resistance at .8400 and making higher lows. If there are enough buyers around, we may just see the pair rally back up to .8600. However, if NZD/USD goes lower than yesterday’s low and breaks support at the rising trend line, we may see it tumble all the way down to .8000.

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!