Daily Chart Art – July 24, 2012

NZD/USD: 4-hour

NZD/USD 4-hour Chart

Will you look at that? It looks like some signs of reversal have popped up on NZD/USD’s 4-hour chart. As you can see, a bullish divergence as well as two dojis has appeared right at a major support level. These two signals, taken together, suggest that the pair could move higher soon. If the pair does head up, it could go as high as .8050, which is the next major resistance level.

EUR/USD: 1-hour

EUR/USD 1-hour Chart

Euro bears, beware! If you’re holding on to a short trade, then you may want to think twice about keeping it on the table longer. The pair has finally found a bottom around 1.2100, and is showing some signs of retracing. This could give the late sellers a chance to enter, as the pair could encounter some resistance between the major Fibonacci retracement levels. Be safe!

GBP/JPY: Daily

GBP/JPY Daily Chart

Will GBP/JPY fall further? That seems to be the case, as the pair just broke the 122.00 minor support level after it had bounced from the 50% Fibonacci retracement level. If you’re bearish on the pair, then now is a good time to consider selling since the pair won’t face another major support level at 118.80.

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.

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