Daily Chart Art – November 2, 2012

EUR/GBP: Daily

EUR/GBP Daily Chart

If you love trend trading, then you’re gonna love this setup! EUR/GBP is currently retesting a rising trend line on the daily chart, with yesterday’s candle forming a spinning top-like candle. With Stochastic now entering oversold conditions, we may just see buyers come back into the markets. Personally, I’d wait for a little more confirmation, such as a strong bullish candle or for Stochastic to crossover before I think about establishing a long position on this pair.

GBP/JPY 4-hour

GBP/JPY 4-Hour Chart

Are the good times about to come to an end for the pound bulls? After all, it looks like Guppy is about to form a double top! The pair is currently finding resistance just below the 129.50 mark and with Stochastic deep in overbought territory, I wouldn’t be surprised if we see this pair head south. Be on the lookout for some bearish marubozu candles as proof that sellers are back in control.

AUD/JPY: Daily

AUD/JPY Daily Chart

This setup on AUD/JPY is a beaut, ain’t it? With resistance at the 83.50 handle and support at 80.00, the range on the pair’s daily chart has been keeping price in check for about four months now. At the moment, price is testing the top of the channel, so we have another break-or-bounce opportunity on our hands. Can’t decide on whether to buy or sell? Wait for candlestick patterns to form and give you confirmation!

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.

  • Tsvetomir Traykov

    I made the same analysis on eur/gbp chart, but i think the price will brakeout, there is also HS pattern on the daily chart. Plus the PMI construction showed better than expected results. I’m going bearish on that!

  • Cole

    Anyone have any Fundamental analysis to back up these trades? Seems like the events lately have been rocking the chart signals this week.

  • Guest

    GBP/JPY is also re-attempting the daily/weekly trendline from the April 2010 high… Will it act as resistance again?

  • Granticus_Maximus

    GBP/JPY is hitting its April 2010 daily/weekly trendline again too…

  • Mike Wagner

    Been looking at the same AUDJPY chart myself.