Daily Chart Art – May 6, 2011

EUR/JPY: Daily

EUR/JPY: Daily

First up in the euro special, EUR/JPY! After dropping a solid 300 pips in yesterday’s power hour, the pair is now approaching a key potential support-or-resistance near 115.50. With Stochastic nearing oversold conditions, could we see a solid bounce from this level? Be on the lookout for any reversal or exhaustion candles as a sign that support is holding.

EUR/USD: Daily

EUR/USD: Daily

Bada bing, bada boom! Talk about a breakout! After consolidating for the past five days, EUR/USD finally busted out of its consolidation. With yesterday forming a bearish marubozu candle and with Stochastic just crossing over out of overbought conditions, we may just see this pair continue to drop across the charts. I’d keep an eye though, for that rising trend line. It may just provide some support at 1.4500!

EUR/CHF: Daily

EUR/CHF: Daily

Lastly, let’s check out what’s partyin’ on EUR/CHF. The pair had been finding strong support near the middle of the horizontal channel around 1.2750. But now that price has broke through the support level, perhaps sellers will flex their muscles and push EUR/CHF all the way down to the bottom at 1.2450.

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!