Daily Chart Art – May 12, 2011

EUR/USD: Daily

EUR/USD Daily Chart

EUR/USD bears: beware! If you’re still holding on to a long-term EUR/USD short trade, then now is the time to reevaluate your position. As you can see, price is just bounced from 1.4200, a major psychological level. Since price found support here in the past and the Stochastic showing that conditions are oversold, we could see EUR/USD retrace some of its losses! Keep a close eye on price action homies, as a move towards the 1.4500 level is highly possible.

AUD/USD: 4-hour

AUD/USD 4-hour Chart

Yesterday, AUD/USD experienced a major drop as it broke out of its rising wedge formation and fell almost 200 pips. With the appearance of the “three black crows” candlestick pattern, there seems to be reasonable evidence that the pair has more room to go down. If you’re part of the bear camp, look for ways to jump in the breakout and ride the pair to previous support at 1.0540.

NZD/USD: 1-hour

NZD/USD 1-hour Chart

Range traders are going to love this chart! NZD/USD seems to be trading in a fairly decent range, as it has found resistance at the .7960 region and significant support around the .7870-.7890 area. Yesterday, the bottom of the range was tested, but price was unable to close below it. Does this mean we’ll see the pair pop back up? That seems to be the case but, like all things related to forex trading, nothing is certain!

Before you get carried away with all these chart patterns and candlesticks, 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!