Daily Chart Art – May 3, 2011

NZD/USD: 1-hour

NZD/USD: 1-hour

First up, let’s see what’s poppin’ over on NZD/USD. The pair has been in a tight range over the past couple of weeks, trading within a tight range of about 120 pips. It’s been finding resistance at the .8100 handle while bouncing off support at .7980. With price now at the middle of the range, I suggest waiting to see the reaction to the support level before putting on any positions on this pair.

EUR/JPY: 1-hour

EUR/JPY: 1-hour

Over the past few days, EUR/JPY has been chillin’ like a villain, boppin’ its head to the beats of a descending channel. With the pair now approaching the bottom of the channel and with Stochastic deep in oversold territory, is it time for the bulls to bust a move? Be on the look out for any reversal candles as a sign that the recent down move may be coming to an end!

GBP/USD: 1-hour

GBP/USD: 1-hour

Boomshakalaka! Is there no stopping GBP/USD from rising up the charts? First, the pair busted out of a descending channel. Next, it blew through a bullish flag to set new highs. Now, it seems like yet another flag may be forming? Will GBP/USD make it three in a row? First, we’ll have to see how price reacts to the 1.6600 handle, which could be a resistance-turned-support level. If price reverses from that level, it could be a sign that bulls are still in control and may be revving up for another strong move!

Now, I know the setups I present daily are wicked-sick. But before you get carried away with all these chart patterns and candlesticks, 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!