Daily Chart Art – May 6, 2013

USDX: 4-hour

U.S. Dollar Index Chart

Given last Friday’s strong moves, I think it’s only apt that I take a look at the U.S. dollar index. The price action on the U.S. dollar index is pretty interesting, as it seems to be trading within a wide descending channel. It’s currently at the middle of the channel, but it looks like it’s poised to go higher. If you’re bullish on the dollar, then you’ll be glad to know that the next major resistance won’t be until the top of the channel, somewhere around the 83.00 level.

USD/JPY: 4-hour

USD/JPY Chart

Range, range, range! Last week, the USD/JPY bulls were able to defend support at 97.00 strongly. From the looks it, the bulls are trying to push the pair even higher, possibly towards the 100.00 major psychological level. Be careful siding with the bulls though! The Stochastic shows that conditions just hit overbought territory, which means the pair could pull back soon.

GBP/USD: Weekly

GBP/USD Chart

Last but not the least is a long-term look on one of the market’s favorite pairs, GBP/USD. Cable, as you can see, is moving higher after falsely breaking support at 1.5270. The Stochastic also indicates that the pair still has room to rally as it isn’t overbought yet. Let’s see if the bulls have the energy to take the pair all the way back to 1.6300!

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.