Daily Chart Art – May 20, 2013

EUR/USD: Daily

EUR/USD Chart

Are you holding on to a short position on EUR/USD? If your answer is yes to this question, then you better be extra careful this week! As you can see, the pair has just found support at the 1.2800 major psychological level, indicating that a pullback may happen soon. The Stochastic supports this, as it shows that conditions are oversold. If 1.2800 remains intact, we could see EUR/USD bounce back up to 1.3000.

GBP/USD: 4-hour

GBP/USD Chart

Bears, rejoice! After weeks of being held up by a strong ascending trend line, Cable is finally making its way lower. The trend line was just broken a few days ago and the next major support level is still almost 200 pips away. If you’re part of the bear camp, it’s probably a good idea to hold on to your bias as price could probably go as low as 1.5000.

USD/CHF: 4-hour

USD/CHF Chart

What do we have here? It looks like USD/CHF is about to retrace some of its winnings! The pair just formed a double top, and with the Stochastic about to hit overbought territory, we could see a pullback soon. It’s hard to say how far it would pare its gains, but if it does manage to fall back to .9500, we could see the bulls jump in again. After all, that level lines up nicely with the 50% Fibonacci retracement level and a former major resistance.

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.