Daily Chart Art – August 24, 2012

AUD/USD: 1-hour

AUD/USD 1-hour Chart

Will AUD/USD’s range still hold? The pair has just turned after hitting resistance at the top of the range around 1.0520 and is currently sitting at the bottom. At the same time, stochastic dipped to the oversold zone, suggesting that Aussie bears could use a break. If support at the 1.0425 area holds again, we might see AUD/USD climb back up to test the top of the range once more.

USD/CHF: 1-hour

USD/CHF 1-hour Chart

Are my groovy glasses deceiving me or is that really a falling trend line forming on USD/CHF’s 1-hour chart? The pair has been on a steady downtrend lately but it looks ready to pull back for a quick retracement. There’s an area of interest right in line with the 38.2% Fib and the trend line, which could act as resistance for the pair. Another area of interest is located close to the 61.8% level, just below the .9650 minor psychological resistance.

GBP/JPY: 4-hour

GBP/JPY 4-hour Chart

If you’re a huge fan of break-and-retest plays, then here’s the setup for you! On its 4-hour time frame, GBP/JPY looks exhausted from its recent run and seems itching to pull back to the former resistance level just above 123.00. Take note that this major psychological level is right in line with the 61.8% Fibonacci retracement level, which could act as support for the pair. Stochastic is still heading down, suggesting that pound bears just might take GBP/JPY all the way down to the 123.00 area.

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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