Daily Chart Art – May 23, 2012

EUR/USD: Daily

EUR/USD Daily Chart

So much for a bulls’ comeback! EUR/USD is now heading back down to long-term support at 1.2626. The question is, will the support level hold or will the bears break through? I wouldn’t set my long orders just yet, homies. Instead, it might be better chill out and wait for some candlestick confirmation. You don’t wanna get caught up on the wrong side of a trade if the bears bust a cap on the support level!

EUR/JPY: 4-hour

EUR/JPY 4-hour Chart

You know what else might be headed for new lows? EUR/USD brotha from another motha, EUR/JPY! After resting the 102.00 handle, EUR/JPY has now broken out of a bearish flag. For now, I’d keep a spotlight on the former lows at 100.20 as a potential support level. If price breaks below that area, it may just breach the psychological 100.00 mark!

NZD/USD: 4-hour

NZD/USD 4-hour Chart

Last up, here’s my take on the Kiwi. After bouncing right off the 38.2 Fibonacci retracement level, NZD/USD seems to be shooting off for new lows. Wondering where it find support? This is where the trusty Fibonacci extension tool becomes useful! Based on Fib extensions, the Kiwi may find a bottom at either the 61.8% or 75.0% levels, so make sure you highlight those price areas on your charts!

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.