Daily Chart Art – June 1, 2011

EUR/JPY 4-hour

EUR/JPY 4-hour chart

First up on today’s lineup is EUR/JPY struttin’ what looks like a double bottom chart pattern on the 4-hour time frame. All the cool cats out there who have gone through the School of Pipsology know that this is usually taken as a trend reversal pattern. So does this mean we’ll see the euro hustle all the way up to its previous high around 120.00? I wouldn’t be too excited if I were you. Note that with price consolidating at the neckline resistance and Stochastic being in the overbought area already, bears could be revving up to take another shot at 114.00.

EUR/CHF 1-hour

EUR/CHF 1-hour chart

Are my Ray-B’s just foggy, or is that a bearish divergence on EUR/CHF? Nope, I think I’m seeing the real deal yo! It looks like price is testing the previous support area at 1.2300 which is also the 50% Fibonacci retracement level. If there are enough sellers in the market, we may just see the pair plunge to 1.2150. However, if there aren’t enough of them to reprezent, buyers could push EUR/CHF all the way up to its previous high around 1.2450.

GBP/JPY 4-hour

GBP/JPY 4-hour chart

Oooh, check out Guppy cruisin’ up the charts in that ascending channel! Does the pound enough fuel left to make it all the way up to 135.00? Hmmm, it might be too early to tell. But if I were you, I would watch out for the area around 133.50 and see if support at the rising trend line and last week’s high holds. If it doesn’t, GBP/JPY could fall to 132.50.

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 Economic Roundup. Check him out, playas!

  • Seánie 숀 Hocko

    Hey, great call on the fib play on EUR/CHF!! Went all the way down to 1.21.  I’m sorry I didn’t get in there myself!!

    And another brilliant call on the GUPPY breakout!!  It’s down at 132.50 now!

    I hope you made a killing on these two trades!  Great work!  I’ll be keeping a very close eye on your future posts!!