Daily Chart Art – November 9, 2012

GBP/JPY: 1-hour

GBP/JPY 1-Hour Chart

Missed that double top breakdown on GBP/JPY? Don’t worry! If you’re bearish on this pair, you could still have a chance to short if it pulls back. The neckline of the double top pattern is right in line with the 50% Fibonacci retracement level, which seems to be acting as a support-turned-resistance zone. Stochastic is still making its way out of the oversold zone, which means that pound bulls could still push the pair up until the 50% Fib resistance.

USD/CHF: Daily

USD/CHF Daily Chart

Don’t look now but USD/CHF finally made a convincing break above the neckline of the double bottom pattern on its daily chart! Now this pattern is roughly 200 pips in height, which suggests that USD/CHF could rally by a couple hundred pips from here, right until the .9700 major psychological level. Be careful though, as stochastic just reached the overbought area, implying that the rally could lose steam soon.

AUD/USD: 1-hour

AUD/JPY 1-Hour Chart

Here’s a potential breakdown play on AUD/USD. The pair just formed a complex head and shoulders pattern on the 1-hour chart and is sitting right on the neckline near 1.0400. According to my chart patterns cheat sheet, this means that a selloff could be in the cards once the pair breaks below the neckline support. Stochastic, on the other hand, is telling another story as it just made a bullish divergence.

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.