Daily Chart Art – May 25, 2011

GBP/JPY 4-hour

GBP/JPY 4-hour chart

I’m getting tingles from the way GBP/JPY has been flirting with the 133.00 level! It’s downright sexy! As you can see, this baby has been knocking on the door of 133.00 for a while now, and it’s finally about to meet the falling trend line. If you’re not feelin’ this setup yet, maybe you will when Stochastic hits overbought territory. It’s already almost there!

EUR/USD 4-hour

EUR/USD 4-hour chart

Is that all the euro bulls have to give??? The market doesn’t seem interested in taking the pair above 1.4100 at the moment, as it formed a perfect doji and turned around right at the 38.2% Fibonacci retracement level. So far, the bears appear to be behind the wheel. If this continues, they may just drive this baby back down to 1.4000.

USD/CAD Daily

USD/CAD daily chart

The ladies like me because I’m a lot like the falling trend line on USD/CAD… long-term material! Haha! Kidding aside, USD/CAD has been on a downtrend for about 8 months now. If you think this trend line will continue to hold, as it has four times before, then jump aboard the bear train because we’ve got a bearish divergence in the works! On the other hand, if you’re feeling bullish and believe that USD/CAD will continue rising, you ought to consider setting a buy stop above the trend line.

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!

  • Alamanda6607

    hrmmmm