Daily Chart Art – October 13, 2011

EUR/GBP: 4-hour

EUR/GBP 4-hour Chart

For those who played (and missed) the mid-channel support on GBP/JPY yesterday, then this setup is for you! EUR/GBP is also showing a channel on the 4-hour chart, and right now the overbought Stochastic and tight consolidation near the previous resistance are supporting a short trade. Be careful though, as the euro and pound traders can also forget about dragging the pair to the support at .8550 and push it all the way up to .8870 instead.

AUD/USD: Weekly

AUD/USD Weekly Chart

If you’re the long-term kind of guy like Forex Gump, then you might want to take a look at the sweet setup on AUD/USD‘s weekly chart. The pair found resistance at the 50% Fib last week, but it doesn’t mean that you’ve missed the move! Since Stochastic is still in the oversold area you can enter a trade with a tight stop and aim for 1.1000, while you can also wait for a possible resistance at 1.0500 if you’re bearish on the pair.

USD/CHF: 1-hour

GBP/JPY 4-hour Chart

Swing trading and position trading not to your taste? Take a look at USD/CHF‘s setup! On the 1-hour time frame the pair bounced from a support near .8900 and it seems like it’s heading for the 50% Fib, if not its previous highs near .9100. But be warned, brothas! The 50% Fib is also lining up nicely with the former support level, which could provide some resistance for the dollar bulls. Stay vigilant in trading this one!

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.