Daily Chart Art – July 25, 2011

EUR/JPY: Daily

EUR/JPY Daily chart

Is that a retracement I see on EUR/JPY’s daily chart? Why, yes it is! It appears that price is starting to make its way back to 113.60, which, coincidentally, lines up with a previously broken support and the 50% Fibonacci retracement level. If you’re part of the bear camp, this could be a good chance to sell at a good price and jump in the overall medium-term trend. Do be careful though, as the Stochastic shows that the pair ain’t overbought yet!

AUD/USD: Daily

AUD/USD Daily Chart

If you have a long position on AUD/USD, then you must be very happy right now! Last week, the pair managed to break a key resistance level at 1.0800. This could mean that the bulls have everything under their control and are pushing for AUD/USD to rally to new highs. If it continues to hold above 1.0800, it is likely that we’ll see AUD/USD retest 1.1000, the pair’s all-time high.

GBP/USD: 4-hour

GBP/USD 4-hour Chart

And lastly, let’s take a look at Cable. As you can see, a bullish flag seems to have formed on the 4-hour chart. A bullish flag is considered as a bullish continuation pattern as buyers “pause and catch their breathe” before taking the pair higher again. Watch this pair closely, as an upside break could cause the pair to test the 1.6400 major psychological level.

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!

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