Daily Chart Art – May 29, 2012

EUR/JPY: 1-hour

EUR/JPY Hourly Chart

Let’s kick-start the day with this sexy setup on EUR/JPY. On the hourly timeframe, we see that the pair has just been trading around the major 100.00 handle for the past three trading days. Will the range hold? Maybe, but don’t be so sure about it! Be wary of a strong close above resistance at 100.20 as it may signal that the pair is on its way back up to 102.00. Meanwhile, a close below support at 99.50 could hint that EUR/JPY could continue to trade lower, possibly all the way down to 97.20.

GBP/USD: Daily

GBP/USD Daily Chart

Ah, ha! Remember yesterday’s Chart Art? Well, It looks like it’s not just the Kiwi and the Swissy chillin’ like ice cream fillin’ around their previous lows against the dollar! Check out Cable on the daily timeframe. The pair is trading around 1.5650 where it previously found resistance and support. So if you’re looking to trade the pair, be sure you keep your eyes on this level! If price manages to close below Friday’s low at 1.5630, it could mean that GBP/USD will soon trade around 1.5450. However, a bullish candlestick pattern around the area may be a sign that we’ll see the pair rally back up to 1.5850.

EUR/AUD: 4-hour

EUR/AUD 4-hour Chart

Finally, here’s EUR/AUD for all you who fancy cross-currency pairs! My buddy Cyclopip pointed out a rising trend line on the pair last week. Too bad for the gentle giant, he already cancelled his orders when support broke. But don’t fret! With Stochastic already in the oversold area, we might see the pair retrace some of its losses soon. It could pullback somewhere between the 38.2% and 61.8% Fibonacci retracement levels (and possibly find resistance at the broken trend line). However, if there are still enough euro bears in the market, EUR/AUD could continue to drop down to 1.2650.

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.