Daily Chart Art – May 2, 2012

EUR/USD: 1-hour

EUR/USD:  1-hour Chart

Bounce or break? What’s your call on EUR/USD as it tests the rising trend line for support? If you’re feeling bullish for the pair, you may want to wait for reversal candlesticks to materialize around the area which could signal that EUR/USD will continue trading higher. On the other hand, a strong close below yesterday’s low at 1.3204 could be a sign that the pair is on its way back down to 1.3100.

GBP/JPY: 1-hour

GBP/JPY: 1-hour Chart

If you think divergences are sexy, you’re in for a treat with this setup on GBP/JPY! A bearish divergence has materialized on the 1-hour time frame with price making lower highs while Stochastic is making higher highs. If you’re feeling bearish and think that the pair will soon drop to 129.50, seeing that the pair is trading at the 38.2% Fibonacci level may also tickle your fancy. However, don’t get too excited just yet! There may still be enough bulls in the market to push the pair to 130.50 and test the previous support area around the 50% Fibonacci level. Heck, there may even be enough of them to push GBP/JPY back above 131.50!

AUD/JPY: 1-hour

AUD/JPY 1-hour Chart

There’s also a similar setup on AUD/JPY for y’all who prefer trading comdolls. Price has pulled back to a previous support area around the 38.2% Fib level. However, Stochastic hasn’t quite reached the overbought territory just yet. So, once again, don’t get too giddy shorting! If the pair closes strongly above yesterday’s high around 83.30, we could see AUD/JPY hustle all the way back up to 84.50!

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.

  • Megapronk

    I really liked the EUR/USD setup! but then I zoomed out to the daily chart, ant it’s right at the top of a falling resistance! So it seems like there’s resistance on both sides…. What should I do about that?!

    • Phillipjong

      go with the longer one! (hence why i said down!)

      hope it helps

      -Phill

  • Phillipjong

    Zoom out to D1 Chart & there’s a nice downward triangle forming (from Feb 27 till now) … and its coming to an end! + Stoch, MACD, & RCI are all losing upward momentum

  • Bernbeach

    Hi,  I like your daily charts. I work with M and prefer your charting set up. Where can I find/buy your charting software? Thanks in advance. Harry