Daily Chart Art – July 8, 2011

EUR/CHF: 1-hour

EUR/CHF 1-hour Chart

Aaah… Breakout! Le break, c’est chic, breakout! And that 70s throwback was brought to you by the EUR/CHF upside breakout from consolidation on the 1-hour chart. The pair seems to be consolidating again and forming a bullish pennant, probably getting ready for another upside breakout. I marked the previous breakouts on the 1-hour chart to give you an idea of how much the pair moves afterwards. If the pair breaks above the 1.2150 area, it could rally back up to the next area of resistance around 1.2250. Another breakout above that level could take the pair to the 1.2350 area. Be careful though, stochastic is already in the overbought zone, which means that there’s still the chance that EUR/CHF could slide back to its recent lows around 1.2000.

EUR/JPY: 4-hour

EUR/JPY 4-hour Chart

Heads up! EUR/JPY is nearing the top of its range around the 118.00 handle. Will it hold or break? Stochastic just made it out of the oversold area and is still pointing upwards, suggesting that euro bulls have enough energy to push for a breakout. But if resistance at 118.00 holds, the pair could fall back to the middle of the range or until the bottom near the 114.00 major psychological support. Better check out the upcoming economic reports from the euro zone to find out where this pair is headed!

EUR/GBP: 4-hour

EUR/GBP 4-hour Chart

Up, up, here we go! It looks like Cyclopip was right on the money on this EUR/GBP move, as the pair bounced right from his long entry area. Mad props to you, man! The pair was able to find support at the 50% Fibonacci retracement level and made a bullish divergence at the same time. Stochastic is climbing, which means that EUR/GBP could still fly like a G6. If the pair is able to jump above the .9000 major psychological level, the next area of resistance seems to be near the .9100 handle. But if the euro is unable to sustain its rally, it could test the rising trend line support once more.

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!