Daily Chart Art – October 22, 2012

GBP/JPY: Daily

GBP/JPY Chart

That is one ugly chart pattern! I’m talking about Guppy, of course! After breaking through the 125.00 handle, the pair seems to have formed an ugly triple top, forming long wicks at each high. With Stochastic just crossing over again, we could see price action drop and make another run for the 125.00 mark. If you’re looking for a break of the neckline, I suggest waiting for a solid candle close below the support level before putting up any short positions.

USD/CAD: Daily

USD/CAD Chart

Heads up, homies! We’ve got a trend line break! USD/CAD finally closed above a falling trend line, as the bulls were just too powerful last Friday. Now that the bulls are in total control, the next major level to keep an eye on is parity. If price action manages to breach this level, I wouldn’t be surprised to see this baby soar back up to former highs at 1.0400.

AUD/USD: 4-hour

AUD/USD Chart

Lastly, here’s a simple setup for all you Fibonacci die-hards out there! After topping out at the 1.0400 handle, AUD/USD has retraced, and is currently finding support at the 50.0% Fibonacci level. With some bullish divergence forming, we could see the bulls come back in force. If you’re more of the cautious type, you could wait for a test of the 61.8% Fib, which lines up with former resistance at 1.0280.

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.