Daily Chart Art – January 27, 2012

EUR/USD: Daily

EUR/USD Daily Chart

Major pair traders huddle up! EUR/USD capped the day with a Gravestone doji yesterday, which is right near the 50% and 61.8% Fib levels on the daily chart. Not only that, it also looks like Stochastic is in the overbought region. The 1.2950 handle might be a good first profit target if you want to short this pair, but make sure you have your stop losses in place!

AUD/USD: 1-hour

AUD/USD 1-hour Chart

Somebody holler at Happy Pip because her AUD/USD trade might need adjustments! AUD/USD is fast approaching the 50% Fibonacci level on the 1-hour chart, which is near the 1.0650 minor psychological handle and a previous resistance. Oh and look at that, there’s also a potential bullish divergence in time for Stochastic to leave the oversold region! Be careful in shorting this one though, as a break in the 1.0550 level might take the pair all the way to 1.0450.

GBP/JPY: Daily

GBP/JPY Daily Chart

Last one up for today is another divergence setup on Guppy. The 122.00 handle on the daily chart has served as a pretty good resistance in the past, and it looks like the level has done its magic yesterday too. This time around there’s also a bearish divergence and an overbought Stochastic signal to support a short trade. Who’s up for trading this one?

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.

  • Finjoman

    Morning from South Africa and thanks for the good work. Seems I need to revisit the lesson on Fibonacci. You have the 50% fib on the Eurodollar at 1.3195 while I have it at 1.3437. What am I not doing right

  • Noobbgodlike

    On AUD/ USD
    “as a break in the 1.0650 level might take the pair all the way to 1.0450.”

    Do you mean 1.0550 (go down past 50% Fibonacci)?? Because I can’t understand why, if the price rise up to 1,0650 it will go down to 1.0450.
    I am just starting to learn about forex (Middle grade in babypips school :D, Sorry if this sounds stupid :D).

    Thanks you very much