Daily Chart Art – May 10, 2012

GBP/USD: 1-hour

GBP/USD 1-Hour Chart

If trading trends is your style, then this setup is for you! GBP/USD just got rejected at the falling trend line that’s been holding since the start of the month. What’s making the setup even sweeter is that the resistance area is lining up with the 1.6150 minor psychological level. Will the trend line continue to hold? Stochastic is on the bears’ side for now, but keep your eyes peeled in case we see a break above the resistance area!

EUR/JPY: 4-hour

EUR/JPY 4-Hour Chart

Euro bulls huddle up! EUR/JPY seems to have stopped bleeding in the last couple of hours as it consolidates at the 103.00 major psychological handle on the 4-hour chart. Not only that, but a bullish divergence has also popped up to support a bullish euro trade! Now, I’m no genius at fundamentals like my man Pip Diddy is, so you gotta be careful if you’re buying this pair. Don’t forget to place your stop losses, aight?

NZD/USD: 1-hour

NZD/USD 1-Hour Chart

Somebody holler at Happy Pip and tell her of this setup! On NZD/USD‘s 1-hour chart is a classic bearish pennant in the making. If you’ve read your School of Pipsology, then you’d know that bearish pennants usually signal a continuation of a trend. Will it be the case for the Kiwi today? Stochastic is in the middle ground for now, so we’ll probably have to wait a couple more hours to see a possible break. Anyone planning on trading this comdoll?

Anyone planning on trading any of these setups? Hit me up!

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.

1 comment

  1. Jac_zam

    Seems you were right about EURJPY, too late I saw blog entry and was on the opposit side of the market.

    Reply

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