Daily Chart Art – July 6, 2011

USD/JPY: 4-hour

USD/JPY 4-hour Chart

Let’s start the day with a tossup, shall we? On the bulls’ side, we have an ascending triangle on the 4-hour chart as USD/JPY makes higher lows. But on the bears’ side we also have a resistance at 81.50, a bearish divergence, and an overbought Stochastic signal. So which side are you on? A break above 81.20 might be a good entry for the bulls, while the bears can wait for a break below the rising trendline.

GBP/USD: 1-hour

GBP/USD 1-hour Chart

I don’t know about you, but it looks like GBP/USD has been chillin’ inside a channel on a 1-hour chart. For now the pair is hanging around the middle of the channel, but a nearly oversold Stochastic signal might get the bulls and bears moving in the next candles. The 1.6130 handle could be a sweet profit for the bulls while the bears can also aim for the 1.6000 channel support.

USD/CHF: 4-hour

USD/CHF 4-hour Chart

Here’s another easy one for ya! The USD/CHF traders are currently battling it out at the .8400 handle, but it looks like the patterns are lining up for the bulls. Aside from a potential support at the psychological level, there’s also a bullish divergence, possible support at the 50% Fib, and an oversold Stochastic signal. Be careful on buying this pair like crazy though. There’s always a possibility that the bears show off their swag today!

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!