Daily Chart Art – September 12, 2011

EUR/USD: Daily

EUR/USD Daily Chart

No mercy! Remember the setup I pointed out on EUR/USD last Friday? Well, it looks like the bears didn’t hold back in pushing the pair to its 6-month low, breaking past support around 1.3950. With Stochastic already indicating oversold conditions, will we see the euro bulls take charge of the pair? Maybe. But keep tabs on the previous support areas between the 38.2% and 61.8% Fibonacci retracement because the bears may just be waiting there to pounce on the pair again!

USD/CAD: Daily

USD/CAD Daily Chart

Uh, oh… USD/CAD is heading back to p-p-p-parity! If you’re feeling bullish for the pair, make sure you have your candlestick cheat sheet ready and watch out for reversal signals around the area as we may just see resistance hold and the pair could bounce back down to .9700. However, if you think the dollar’s rally will still continue, be on your toes for a strong bullish break above 1.0000 as this could mean that USD/CAD would rally up to 1.0300.

GBP/JPY: 4-hour

GBP/JPY 4-hour Chart

To finish today’s roster, check out GBP/JPY on the 4-hour timeframe sporting a bullish divergence around its previous low. Keep an eye out for bullish candlestick reversal patterns as these could hint that GBP/JPY is ready to bounce back up to 124.00. However, if the pair makes new lows and breaks support at 122.50, we may just see the pair tumble to 120.00!

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!