Daily Chart Art – December 10, 2012

EUR/JPY: 4-hour

EUR/JPY 4-hour Chart

Don’t look now but there’s a sweet rising channel setup on EUR/JPY! The pair is struggling to break below the 106.50 area, which lines up nicely with the bottom of the channel. Stochastic is also taking the bulls’ side as it’s hanging out at the oversold region. A tight stop loss below last week’s low could be awesome if you’re planning to buy the euro.

AUD/USD: 4-hour

AUD/USD 4-hour Chart

Alert the comdoll traders! AUD/USD could be in for a breakout! Happy Pip will be thrilled if she finds out that the Aussie is sporting an ascending triangle on AUD/USD’s 4-hour chart. The bears are defending the 1.0500 area well, but judging from the higher lows it’s only a matter of time before the bulls and bears clash at the major psychological level. Whose side are you on?

GBP/USD: 4-hour

GBP/USD 4-hour Chart

Is cable ready to resume its climb? I know it’s an uphill battle but GBP/USD could find solid footing between the 38.2% and 50% Fibonacci retracement levels. For one thing, the 1.6000 handle is right within these Fibs and this former resistance level could act as support from now on. To top it off, there’s even a bullish divergence forming as the price made higher lows while stochastic showed lower lows. Make sure you take a quick look at our Divergence Cheat Sheet if you plan to go long GBP/USD!

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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