Daily Chart Art – January 9, 2012

GBP/USD: 4-hour

GBP/USD 4-hour Chart

Gather ’round and take a look at this falling channel on GBP/USD’s 4-hour chart! It seems like the pound’s selloff could come to a halt once the pair reaches the bottom of the channel. Stochastic is already in the oversold area, hinting that pound bears are losing steam. Keep your eyes on the 1.5300 major psychological level, which lines up with the bottom of the channel, in case reversal candlesticks form right there. Better brush up on Japanese candlestick patterns to know what you’re looking for!

AUD/USD: 4-hour

AUD/USD 4-hour Chart

Will the rising trend line on AUD/USD’s 4-hour chart hold? The pair is sitting right on the trend line at the moment, still undecided whether to bounce or to go for a breakdown. With the 1.0150 minor psychological level in line with the trend line, there could be a significant amount of traders waiting to buy the Aussie at that support level. However, if risk is still off this week, AUD/USD might be forced to go down under.

EUR/CHF: Daily

EUR/CHF Daily Chart

EUR/CHF has been moving sideways on its daily chart, as it found support near 1.2150 and resistance at 1.2450. Right now, the pair seems to be testing the bottom of the range as the pair inches closer and closer to intervention levels. Stochastic hasn’t quite made it to the oversold area and hasn’t crossed upwards just yet, suggesting that the pair has some room to fall further. But if support near 1.2150 holds, brace yourselves for a possible rally back up to 1.2450.

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.