Daily Chart Art – October 26, 2011

EUR/USD: Daily

EUR/USD Daily Chart

First up, here’s an update of that EUR/USD chart from last Monday. EUR/USD is slowly making its way up the charts but has yet to taste the 1.4000 mark. I suspect that we’ll see a lot of selling pressure at this area, as it served as an area of interest in the past and also lines up closely with the 61.8% Fib level. Stochastic is also in overbought territory, so we could see sellers come back to bust a pip once the pair tests the resistance level. I’ve got a feeling that Huck might give this one a shot!

NZD/USD: 1-hour

NZD/USD Daily Chart

Next up is a sweet ascending channel on NZD/USD. After topping out just above .8100 earlier last week, the Kiwi has now dropped over 150 pips. However, we could see the pair’s decline come to an end soon, as it is very close to testing a rising support trend line. I suggest waiting for the pair to test the support area and see if any reversal candlesticks form. If we do see any, you know what to do Happy Pip!

GBP/JPY: 1-hour

GBP/JPY Chart

Lastly, here’s a potential breakout trade in the making. GBP/JPY has recently been consolidating into an ascending triangle, as it’s formed higher lows, but found tough resistance at the 122.00 mark. With price about to test the resistance level for the 4th time soon, a breakout could be imminent. Cyclopip, you might wanna keep your eye on 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.

  • gerald

    link to babypips.com
     
    link to babypips.com
     
    link to babypips.com
     
    I have been following your analaysis for the EUR/USD pair .
    a)On 14oct, your take was short at 1.37 (between 38.2% and 50% Fib level).
    b)On 20th Oct, your take was short at 1.39 because major psychological level.
    c)On 24th Oct, you say 1.4 is the 61.8% retracement Fib level
     
    On 26th Oct, you are still talking about that same level. From 14th to 26th Oct, the pair just refuses to drop. Why ??? If the pair makes its way to 1.45 level. What happen then? Short at 1.45??

  • gerald

    link to babypips.com
     
    link to babypips.com

    link to babypips.com

    I have been following your analaysis for the EUR/USD pair .
    a)On 14oct, your take was short at 1.37 (between 38.2% and 50% Fib level).
    b)On 20th Oct, your take was short at 1.39 because major psychological level.
    c)On 24th Oct, you say 1.4 is the 61.8% retracement Fib level

    On 26th Oct, you are still talking about that same level. From 14th to 26th Oct, the pair just refuses to drop. Why ??? If the pair makes its way to 1.45 level. are you going to say again that this is a major resistance and short from there??  Can you tell us why the pair is going up?? Are we going to short at every major resistance level till it comes true one fine day?

  • indo

    Very good analysis