Daily Chart Art – August 9, 2011

USD/JPY: 4-hour

USD/JPY 4-hour Chart

And just like that, USD/JPY is almost back to pre-intervention levels! It didn’t take long for sellers to regain control of the pair, but how much longer can they keep this up? Price is fast approaching 77.00, a proven support level. Not only is this an area of interest for traders, but it’s also a key level to the Bank of Japan, as it was at this level that the central bank stepped in last week. That being the case, it’s likely that we’ll see a price find some sort of support here again.

USD/CAD: Daily

USD/CAD Daily Chart

There’s just no stopping USD/CAD, is there? Buyers can’t see to get enough of it! They’ve already taken the pair above the neckline of the double bottom formation on its daily chart. According to the School of Pipsology, when that happens, we can expect the pair to continue rising. But as you all know, there’s no such thing as a “sure thing” in forex. It’s best to wait for today’s candlestick to close before you commit to a trade. You don’t want to get faked out, now do you?

EUR/GBP: Daily

EUR/GBP Daily Chart

I hope y’all are buckled up tight ’cause EUR/GBP looks like it’s about to make a sharp U-turn! The pair has been crawling lower in the past few days, but now it’s at a former support and resistance level… a solid one, at that! Stochastic is suggesting that the pair is already oversold. Actually, I’d go long right now if only the pair showed a few reversal candlesticks! But you know how it is with forex and life… Patience is a virtue!

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!