Daily Chart Art – May 11, 2012

USD/CHF: 1-hour

USD/CHF 1-Hour Chart

First up for the day is a potential resistance play on USD/CHF. Those who are bullish on the scrilla probably know that the pair is having trouble reaching the .9300 major psychological hurdle. This time not only is the pair testing the resistance line again, but an overbought Stochastic signal is also supporting a bearish trade! You think the dollar bears will finally flex their muscles today? Don’t forget to put your stop loss above the .9300 area if you’re planning on shorting the Greenback!

AUD/USD: 1-hour

AUD/USD 1-Hour Chart

I know you can’t get enough of them divergences, so here’s another one for ya! On AUD/USD‘s 1-hour chart is a simple divergence and oversold Stochastic setup. If you zoom in your charts, you can see that the pair has found support at the 1.0050 minor psychological level. Happy Pip also pointed out that 1.0036 is the bottom weekly ATR this week, so you might want to place your stops below that area if you’re long on the comdolls today.

GBP/JPY: Daily

GBP/JPY Daily Chart

If day trading is not your style, then you might want to take a look at a potential position trade on GBP/JPY. The pair has been trading on a symmetrical triangle since late February, but it looks like we’re about to see a breakout! Will the pound’s uptrend continue, or will the yen bulls step up their game? Make sure you read up on symmetrical triangles in the School of Pipsology if you’re planning on trading this setup!

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.