Daily Chart Art – May 17, 2011

EUR/USD: 4-hour

EUR/USD 4-hour Chart

Am I seeing a Three Black Crows in the making? EUR/USD has been bouncing along a descending channel since early May, and it looks like the pair once again rejected resistance at the top of the channel. Stochastic is chillin’ in the middle ground right now, but it recently crossed and is looking like it’s about to head south. The 1.4000 handle is a sweet profit target for the bears, while the bulls can wait for a break above the 1.4200 area.

EUR/GBP: 1-hour

EUR/GBP 1-hour Chart

Here’s another channel action for ya! EUR/GBP has been testing the limits of a descending channel on the 1-hour chart for the past couple of days, but it always seems to go back in the range. Will it finally break the pattern today? A nearly oversold Stochastic signal is supporting an upward movement, while a bearish divergence is keeping investors from charging like Chicago Bulls. Watch this one closely, homies! A break to the upside might push the pair all the way to .8850, while a downward movement might drag the pair to .8700.

EUR/JPY: 1-hour

EUR/JPY 1-hour Chart

Euro bulls unite! If you’re one of them permabulls on the euro, you might want to take a shot at this potential day trade on EUR/JPY. Though Stochastic hasn’t reached the oversold region just yet, a bullish divergence and a rising trendline are supporting a bullish run. Be careful though, as a potential resistance at the 115.50 minor psychological handle is only a few pips away. If you want, you could also play the resistance by shorting near the area and placing a tight stop loss.

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 Economic Roundup. Check him out, playas!

  • njanto

     I love it when I see the same thing as you guys. It makes me think I am not crazy. I also think there is a high possibility of eur/usd heading for 1.400. The only thing is I am Jumping in know wish me luck. (Legendary..!)       Yes I have war cries. forex is war