Daily Chart Art – May 7, 2012

EUR/USD: Daily

EUR/USD Daily Chart

If you’re looking for a newly forming trend, look no further! It appears that EUR/USD has finally broken a very significant support level, which could mean that a downtrend is coming. Price just clearly broke the 1.3000 level and seems to be heading for 1.2630, the next major support level. If you’re part of the bear camp, this could be a nice opportunity to go short.

AUD/USD: 4-hour

AUD/USD 4-Hour Chart

A similar setup could be found in AUD/USD’s 4-hour chart. Price just broke out of its range and it looks like it is heading for parity. The bears seem to be in control since there was a huge gap down over the weekend and price is still moving lower despite the Stochastic being in the oversold territory for an extended period of time.

GBP/USD: Daily

GBP/USD Daily Chart

Confluence is a word that sums up this chart nicely. As you can see in the daily chart of GBP/USD, the 1.6000 major psychological level, the 61.8% Fibonacci retracement, and the rising trend line have all lined up. If you’re bullish on the pair, it would be a good idea to wait for confirmation at 1.6000 before jumping in!

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.