Daily Chart Art – May 4, 2012

AUD/USD: 4-hour

AUD/USD 4-hour Chart

First up is this simple candlestick and support setup on the Aussie. The pair is currently chillin’ like a villain at support at 1.0250, even forming a sweet long-legged doji! With Stochastic now deep in oversold territory, we could be in for a bullish move soon. If you’re the patient type, I suggest waiting for a bullish marubozu candle before putting on long positions!

EUR/JPY: Daily

EUR/JPY Daily Chart

Any of y’all catch the head and shoulders action on EUR/JPY? If you haven’t, scroll on to the daily chart because there’s a huge head and shoulders in the works right now! With price now stalling at the neckline, the question is, will it hold? If we see a solid close below the 105.00 handle, it may be a sign that a breakdown is in the cards.

NZD/USD: 4-hour

NZD/USD Daily Chart

Hulk smash baby! That’s what happened to the range on NZD/USD! Price just blew through support at .8080, forming a solid marubozu candle on the daily chart. Based on the height of the range, the Kiwi could head all the way down to around .7900 before stalling. However, you can also consider waiting for a pullback and retest of the former support level before loading up on those short positions.

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.

  • VTW

    What charting software do you use?