Daily Chart Art – February 15, 2012

EUR/GBP: Daily

EUR/GBP Daily Chart

First up, here’s EUR/GBP on the daily timeframe, sportin’ what looks like an inverse head and shoulders. The School of Pipsology tells us that this is usually taken as a bullish signal. However, before you start positioning your long orders, you may want to wait first for the pair to trade past the neckline resistance. A strong bullish candlestick above .8400 could mean that the pair is on its way back up to .8650. On the other hand, reversal candlesticks around the neckline area could mean that the pair would soon tumble down to .8250.

USD/CHF: 4-hour

USD/CHF 4-hour Chart

Now, chunk the deuce up for USD/CHF rangin’ like a Range Rover on the 4-hour timeframe. With Stochastic indicating overbought conditions just as price bounced off resistance at the top of the range, does this mean we’ll see the pair trade all the way down to the bottom of the consolidation around .9100? Maybe. But if you see the pair close above yesterday’s high around .9230, you may want to hold back shorting the pair. Who knows, it could be the start of a rally back up to .9300.

NZD/USD: 1-hour

GBP/USD 4-hour Chart

If you fancy comdolls like Happy Pip, you should check out NZD/USD trading in a symmetrical triangle on the hourly timeframe. Price just got rejected at the falling trend line and with Stochastic still in the overbought area, it could be on its way down to the bottom of the triangle, around .8280. That is, of course, if there are enough bears in the market. A close above yesterday’s high at .8360 would translate to an upside break and could hint that the pair will soon trade around .8400 again.

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.