Daily Chart Art – June 23, 2011

EUR/CHF: 4-hour

EUR/CHF 4-hour Chart

So much for that ascending triangle! EUR/CHF has just broke out to the down side! If you feel like you’ve missed the boat, don’t feel too bad. It looks like we’ve got another potential breakout play in the making, as a bearish pennant is now forming. If the pair continues to slide, we may see it test former lows at 1.1950.

EUR/JPY: 4-hour

EUR/JPY 4-hour Chart

If you’re into trading divergences, then this could be the setup for you! Bearish divergence has formed on EUR/JPY, as price has formed lower highs, while Stochastic is showing higher highs. In addition, the 61.8% Fib seems to be holding nicely as well. Just watch out for any bullish candle close above 116.00, as it could signal that the bulls are still in control.

GBP/USD: Daily

GBP/USD Daily Chart

Lastly, let’s take a look a Pipcrawler‘s archnemesis, Cable! GBP/USD turned in a Green Lantern-like performance yesterday as it tumbled down the charts. The pair is now fast approaching the psychological 1.6000 handle. This area has proved to be a major support and resistance level in the past. Take note that with Stochastic showing oversold conditions, there may not be enough sellers to push the pair below 1.6000. I’d wait to see how today’s candle closes before punching in my ticket on this one.

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!