Daily Chart Art – August 30, 2011

GBP/USD: 4-hour

GBP/USD 4-hour Chart

Anyone watching cable out there? I know Huck is! I’m pretty sure she’s keeping an eye on that broken support level at 1.6450 and you should too. That’s because the pair pulled for a retracement to the 61.8% Fibonacci level, which is right smack in line with 1.6450. If that level holds as resistance, it could push cable down to its former lows around 1.6200. But if cable surges past 1.6450, it could find resistance near 1.6600.

AUD/USD: 4-hour

AUD/USD 4-hour Chart

Is that a rising channel I’m seeing on AUD/USD’s 4-hour chart or are my groovy glasses just deceiving me? The pair seems to be bouncing up and down between two parallel rising trend lines, but has been spending more time at the bottom half of the channel. Stochastic is already in the overbought area, suggesting that Aussie bears could push the pair down, but bulls could still push AUD/USD to the top of the channel.

EUR/JPY: 4-hour

EUR/JPY 4-hour Chart

Talk about keeping it tight! EUR/JPY has been consolidating inside a rising wedge for quite a while now and it may be due for a breakout. The pair has just hit the top of the wedge and a bearish divergence formed, hinting that we might see a break to the downside. But if the bottom of the wedge holds as strong support, it could push EUR/JPY back to the top of the wedge and even go for an upside breakout. Stay on your toes for this one, fellas!

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!

  • Max

    If it is not much trouble to you, could you tell what stochs you use?? In previous post you used 14 stoch but I think this is a little different.