Daily Chart Art – June 8, 2011

AUD/USD: 4-hour

AUD/USD 4-hour chart

To start the day, here’s a sweet setup on AUD/USD! The pair just rejected a resistance at the minor 1.0750 area, and it looks like it’s about to test its previous support levels near the 1.0500 handle. For those who want to play the bearish divergence in the chart, you can target the 1.0600 or 1.0500. Be careful though, as Stochastic is already approaching the oversold region.

GBP/JPY: 1-hour

GBP/JPY 1-hour chart

Here’s one for the range traders! GBP/JPY is heading straight for 131.00 after bouncing from the resistance at 132.00. The question is, will the support at the major psychological level hold? Stochastic is already near the oversold region, so you could play the range and target 132.00 with a tight stop if the pound bulls manage to hustle some muscle in the next few candles.

EUR/JPY: 1-hour

EUR/JPY 1-hour chart

My last setup for the day is a rising channel setup on EUR/JPY. After consolidating at the 118.00 handle, the pair dropped to the middle of the channel near the 117.50 area. Do you think the mid-channel support will hold? Stochastic isn’t much help for now as it is hanging in the middle ground. The 117.00 might be a good area to put your buy orders if you’re one of them bulls, while the bears can wait for a retest of the 118.00 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 Economic Roundup. Check him out, playas!

1 comment

  1. ケー ちゃん

    Hey big pippin’,
    Isn’t EUR/JPY now is forming ascending triangle? At least that’s the way I see this pair & waiting for bullish breakout.

    K

    Reply

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