Daily Chart Art – May 8, 2013

GBP/USD: 4-hour

GBP/USD Chart

I hope you’ve got your A/C on full blast because this setup is hot, hot, hot! GBP/USD recently slipped to the 1.5450 area, which is right near a mid-channel resistance on the 4-hour chart. What makes this a sweeter support setup is that it’s also a 38.2% Fib area. If you’re one of them pound bulls, you could get a potential great reward-to-risk play if you aim for the top of the channel and place your stop losses below the Fib levels.

USD/CAD: Daily

USD/CAD Chart

One look at USD/CAD‘s daily chart would tell us that parity time is usually party time for the Loonie bulls and bears. Will the big 1.0000 become a resistance-turned-support area for the pair? If you’re in the bull camp, stochastic is already in the oversold region but has not yet crossed above it so you still have time to figure out your bias before you commit to a long position. For you bears, be on the lookout for the pair to sustain levels below parity before considering jumping in short.

EUR/JPY: Daily

EUR/JPY Chart

Our last setup for the day is a possible consolidation-breakout in need of a catalyst. EUR/JPY is consolidating on the daily chart and it looks like it’s about to break out. Is it a bullish pennant waiting to happen or is it simply a symmetrical triangle that hasn’t chosen a direction? Watch this setup closely, brothas!

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.