Daily Chart Art – November 2, 2011

EUR/JPY: Daily

EUR/JPY Daily Chart

First on my list is the volatile EUR/JPY cross currency pair. It appears that the bulls have finally run out of steam as they were unable to take the pair above the 110.00 major psychological handle. With the Stochastic pointing down and price slowly creeping lower, does this mean that the bears are starting to take over? Perhaps! If you’re planning to short the pair, the 105.00 level may be a good preliminary profit target.

NZD/USD: 4-hour

NZD/USD 4-Hour Chart

Next up is the 4-hour chart of NZD/USD. If you’re still holding on to a short position on NZD/USD then perhaps now is a good time to rethink your trade! As you can see, price is finding some tough support at .7900. Since the Stochastic is showing that conditions are oversold, this could mean that we could see a pullback soon. Be careful, Kiwi bears!

EUR/USD: 4-hour

EUR/USD 4-Hour Chart

EUR/USD is showing the exact same setup as NZD/USD. The pair, after its huge 500-pip drop from 1.4200, appears to be finding significant support at 1.3650. This level has served as major support in the past, so we could see the same thing happen again. If you’re part of the bull camp, a short-term bounce play around this support area is a good idea!

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.