Daily Chart Art – February 5, 2013

EUR/USD: 4-hour

EUR/USD: 4-hour Chart

If you’ve been waiting for an opportunity to get a piece of the euro’s rally, you might just get your chance soon! EUR/USD has eased off its highs at 1.3700 and is now retracing a good chunk of its footsteps. The 1.3400 handle presents a prime spot for those of you looking to buy low since it was once a strong resistance level and lies right smack in the middle of the 38.2% and 50.0% correction zone. Just make sure you wait for further confirmation before you go long!

GBP/USD: Daily

GBP/USD: Daily Chart

This one’s for the long-term traders out there! GBP/USD has failed to move across 1.5700 twice in the past week, but this level isn’t in the clear yet. Right now, price is still within striking zone and we can’t say with certainty if this area of interest will hold or break. If sellers manage to push and hold the pair below this critical zone, it might just keep falling until it hits 1.5400. On the other hand, if buyers can keep demand for the pound up, the pair might just revisit its former highs at 1.6300.

GBP/JPY: 1-hour

GBP/JPY: 1-hour Chart

Last but not least, we have GBP/JPY rounding up today’s trio with a clean 150-pip range. The way I see it, there are two ways to trade this pair. If you think it’ll continue trading sideways, wait for it to reach the top of the range and then get short. On the other hand, if you think it’s due to break out, you’ll have to keep your finger off the trigger until price closes beyond the range. For more tips on playing such a setup, I suggest you read the School of Pipsology’s lesson on trading breakouts!

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.