Daily Chart Art – October 3, 2011

EUR/USD: 1-hour

EUR/USD 1-hour Chart

Looks like euro going low, low, low! EUR/USD has started the trading month by gapping down over the weekend, and is now trading below the psychological 1.3400 handle. If we do see the gap fill, chances are that 1.3400 could prove to be a support-turned-resistance level. I suggest waiting for some candlestick confirmation before pulling the trigger on this one.

GBP/USD: 1-hour

GBP/USD 1-hour Chart

Next up is the sexy Lady Cable! This hot momma has been ranging as of late, bouncing between 1.5550 and 1.5700. With GBP/USD recently testing the support level, will the bulls push the pair back up to resistance at 1.5700? A couple of bullish green candle closes might be a sign that the bulls are back in control.

USD/JPY: 1-hour

USD/JPY 1-hour Chart

Lastly, here’s an update of that USD/JPY setup I pointed out Friday. The pair has broken through an ascending channel, piercing through resistance near the 77.00 handle. Could this be a sign of a strong move higher? If you’re patient enough, a better play may be to wait for a pullback and play the bounce off the former resistance level, which just happens to line up with the 50.0% Fib level.

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. Check him out, playas!

  • Laurynas Katkus

    cable broke 15550 lvl. Now sitting on 15500. Wonder if it will go up. I’m currently long.