Daily Chart Art – October 18, 2012

AUD/JPY: Daily

AUD/JPY Daily Chart

Am I seeing double or is AUD/JPY range on the daily chart exactly like the one that I pointed out on AUD/USD yesterday? This time the Aussie is on its way to the top of the range at 83.00 just as Stochastic is nearing the overbought region. Think the pair will reverse at the resistance area? A tight stop loss could work on this setup if you’re gunning for a good reward-to-risk ratio.

CAD/JPY: 4-hour

CAD/JPY 4-hour Chart

Is that a rising channel I’m seeing on CAD/JPY? It’s a bit messy but it sure looks like this pair is moving within a shallow ascending range. Right now, the pair is inching close to the top of the channel, which is right in line with the 81.00 major psychological handle. Will resistance hold? Stochastic is also near the overbought region, suggesting that Loonie bears could pounce really soon. Make sure you set those stops right if you’re trading this one!

GBP/USD: 1-hour

GBP/USD 1-hour Chart

Remember that setup I pointed out on GBP/USD earlier this week? Well, it looks like price already broke above resistance at the falling trend line! And you know what, if you zoom in to the hourly timeframe, you can actually see GBP/USD testing the previous trend line for support. Stochastic, sporting a bullish divergence, hints that there could still be enough bulls in the market to push the pair higher. But what do you think? Is there room for GBP/USD to move higher or are we gonna see the pair drop back below 1.6000 soon?

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.