Daily Chart Art – May 7, 2013

AUD/USD: 1-hour

AUD/USD Chart

Don’t tell me that isn’t a magnificent sight for the AUD/USD bulls! Major support at the 1.0220 level held nicely yesterday, suggesting that a bullish rally could happen very soon. If you’re interested in going long, now is a good time to consider jumping in, as the Stochastic still hasn’t reached overbought conditions. The pair also has a lot of room to go up because the next visible resistance level is 100 pips away.

EUR/JPY: 4-hour

EUR/JPY Chart

Breakout traders, assemble! EUR/JPY is sporting a huge bullish pennant on the 4-hour chart and it looks like it’s currently testing the pattern’s resistance. A convincing close above the 130.00 major psychological level could lead to strong bullish rally, possibly a move towards 135.00. Watch this pair carefully!

USD/CHF: 4-hour

USD/CHF Chart

Lower highs and higher lows… Why, that’s a symmetrical triangle right there! Symmetrical triangles normally form prior a breakout but since the pair is trading at the middle of the pattern, this doesn’t seem to be the case. If you’re long on the pair, you’re in good shape, as the bulls appear to have energy left in them to take the pair to the top of the formation.

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.