Daily Chart Art – August 7, 2012

EUR/USD: 4-hour

EUR/USD 4-hour Chart

First up is a look at Huck‘s favorite pair, EUR/USD. Could the recent downtrend be coming to an end? After all, we just got a break of the inverse head and shoulders that formed on the 4-hour chart! After a fake break late last week, the pair finally broke through and is now hanging around the 1.2400 handle. Don’t be surprised if we see a retest of the neckline around 1.2300 before the bulls make a run for new highs!

EUR/JPY: 1-hour

EUR/JPY 4-hour Chart

For those of you who love Fibonacci setups, this one’s for you! EUR/JPY actually pulled back and bounced off the 38.2% Fib yesterday. But with Stochastic now pointing back south, we could see the bears push price action back down to the 61.8% Fib, which happens to line up nicely with the 96.00 psychological handle. If you’re more of the cautious type, I suggest waiting for Stochastic to hit oversold and for some reversal candlesticks to form before loading up on any positions.

GBP/JPY: 1-hour

GBP/JPY 4-hour Chart

Lastly, here’s a look at Guppy. After posting lower highs and higher lows, could we be seeing a triangle forming on GBP/JPY? Right now, price is dropping and looks like it could be making a run for support at the rising trend line at around 121.50. If you see some reversal candlesticks form at that area, you know what to do!

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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