Daily Chart Art – June 16, 2011

EUR/USD: 4-hour

EUR/USD 4-hour Chart

All aboard the bear train! Sellers powered through support at 1.4330 yesterday, chugging along and breaking the neckline of what looks like a head and shoulders pattern. If you missed the big move, don’t fret! The bear train may just revisit 1.4330 for a retracement. If it does stop by this area of interest, you may want to consider shorting this pair, as it has clearly had difficulty crossing this level in the past.

AUD/JPY: 1-hour

AUD/JPY 1-hour Chart

What’s it gonna be AUD/JPY? Are you goin’ up to 86.00 or down to 84.50? Right now, the pair seems undecided, consolidating around the 85.50 resistance-turned-support level. But y’all know as much as I do that consolidations are almost always followed by strong one-directional moves! If it pops up, its next stop will likely be the resistance area around 86.00. But if it starts edging lower, it could be a sign that the pair is headed back down towards 84.50.

EUR/GBP: 1-hour

EUR/GBP 1-hour Chart

Last but not least, we have EUR/GBP bringin’ up the rear. I gotta tell you, that solid descending channel on its 1-hour chart is lookin’ off the heezy! It’s clearly on a downward trend, so if you’re thinking of trading this pair, keep in mind that the trend is your friend! That means look to short the pair on retracements, or in times when it rises to meet the channel’s falling resistance.

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!