Daily Chart Art – July 21, 2011

AUD/USD: 4-hour

AUD/USD 4-hour chart

Let’s take a look at AUD/USD testing resistance just below 1.0800 for the fourth time. Happy Pip has had her eye on this the entire week! Notice that Stochastic hits the overbought territory each time price tests the resistance level. Hmmm, will it hold this time around and send AUD/USD tumbling to 1.0600? Maybe. But perhaps it would be better to wait for reversal candlesticks before pulling the trigger. Who knows, the bulls could push the pair back up to its all time highs around 1.1000!

GBP/JPY: 1-hour

GBP/JPY 1-hour Chart

Hold up! I think I see a symmetrical triangle on GBP/JPY! It may only be a matter of time until the pair breaks out of its consolidation, so be on your toes for a breakout! If you’re planning to go long, keep an eye out for a strong break above yesterday’s high around 127.90. On the other hand, if you wanna short the pair, waiting for a bearish candle below 126.75 should be a good idea.

EUR/GBP: 4-hour

EUR/GBP 4-hour Chart

Last on our lineup for today is EUR/GBP, sporting what looks like a bearish divergence on the 4-hour timeframe. I know it’s tempting to short the pair at market but as Huck always says, “Good things come to those who wait.” So it may be better to wait for the pair to wait for reversal candles around its previous low, somewhere between the 38.2% and 50% Fibonacci retracement levels. You wouldn’t want to get burned IF all of a sudden the bulls charge and push the pair up to .9050, would you?

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. Check him out, playas!

  • new trader

    have we got an acending triangle here  on the 4hr AUD/USD  if we connect the bottoms? thanks

    • Minh

      I see a normal triangle in larger time frame like H8 and the price is breaking out resistance level.

  • sOh

    just wanna ask u a question..i have install MT4 in my computer..when i plot MACD,i just saw one line and histogram..because i read in your article suppose to be 2 line and histogram..and its hard for me to see the crossing part..any suggestion from pro?