Daily Chart Art – May 1, 2013

EUR/USD: 4-hour

EUR/USD Chart

Hold up! I think I just spotted what could be a double top on EUR/USD! On the 4-hour timeframe, the pair has formed a couple of dojis around its previous high. Will resistance hold? If it does, we could see a drop to somewhere around 1.3000. So be on your toes for confirmation signals!

AUD/JPY: 4-hour

AUD/JPY Chart

If you’re looking for a long-term trade, this setup on AUD/JPY may just tickle your fancy. The pair looks like it’s about to test the rising trend line which coincides nicely with the 61.8% Fibonacci retracement level and the previous resistance area. A bounce somewhere around 100.00 could mean that the pair is headed back up to 106.00. However, a break could spell a drop all the way down to 93.50.

EUR/GBP: 4-hour

EUR/GBP Chart

Finally, here’s one more Fib play on EUR/GBP. The pair has just formed reversal candles around the 38.2% Fib level and Stochastic is sporting a bearish divergence by making higher highs while price is making lower highs. It might be a good idea to jump in on a short. But don’t get too excited! A strong break above .8475 could be a sign that price is headed to .8600.

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.

  • Osama Morsy

    I don’t see a divergence in EURGBP, what stochastic settings are you using ?