Daily Chart Art – October 31, 2012

EUR/GBP: Daily

EUR/GBP Daily Chart

Two days ago, I pointed out that EUR/GBP could start moving upwards due to the hammer that has formed right on the rising trend line. Today, we got even more confirmation in the form of a triple candlestick pattern called the three white soldiers. The three white soldiers is a very strong bullish signal indicating that price could continue upwards. If you’re bullish on the pair, then now is a good time to consider jumping in long, especially since the Stochastic is starting to move out of the oversold territory!

NZD/USD: 1-hour

NZD/USD Hourly Chart

If you’re not into trend line bounces, then you might want to check out a potential breakout play on NZD/USD’s hourly chart. The pair has been trading within a symmetrical triangle since last week, but it looks like it’s about to breakout to the upside. If the bulls manage to step up their game and push price above the upper boundary of the triangle, we could see NZD/USD head to the .8250 level.

AUD/JPY: Daily

AUD/JPY Daily Chart

And it holds! Of course, I’m talking about the resistance at the top of the range on AUD/JPY’s daily chart. As you can see, the pair bounced nicely from 83.40 a few days ago, and has moved slightly lower since then. With the Stochastic showing that conditions are overbought, we could see price start falling again to revisit the bottom of the range somewhere around the 80.00 major psychological handle. Let’s see what will happen in the next couple of days!

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.

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