Daily Chart Art – May 30, 2011

USD/CHF Daily

USD/CHF Daily chart

There’s no stopping the franc baby!!! USD/CHF has been droppin’ like it’s hot, sinking more than 300 pips over the past four days. With a lot of room left before the pair hits the bottom of the descending channel near .8350, the selling party may not yet be over. Watch out though for Stochastic. It’s already in oversold territory and if we see a crossover soon, it may just signal last call for the bears!

AUD/JPY 4-hour

AUD/JPY 4-hour chart

Here’s an update from that AUD/JPY setup I pointed out late last week. Looks like that symmetrical triangle is holding really well! The pair is getting tighter and tighter and you know what means – if you play the breakout, you could be ballin’ in pips!!! Wait for a solid candle close above a 87.00 or below 86.00 before getting in! Good luck to Cyclopip, who’s also waiting for a breakout on this pair!

GBP/JPY Daily

GBP/JPY Daily chart

Ooohh baby, is that an inverse head and shoulders I see on GBP/JPY? The bulls seem to be having some trouble breaking above neckline resistance around 134.00. It’d be best if you wait for today’s candle close before jumping in on the action. A close above the neckline and above 134.00 could signal a breakout to the top. On the other hand, a bearish candle close may signal that the bears are getting ready to bring this pair back to previous lows.

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!