Daily Chart Art - February 22, 2012

Published on Tuesday February 21st, 2012 at 10:56PM by bigpippin

GBP/USD: 4-hour

 

Let's kick off the day with a potential bounce on GBP/USD's 4-hour chart. Cable got rejected at the 1.5850 area, and it seems that it's heading fast towards the 1.5750 handle. Look out for this area because not only is it near a minor psychological handle, it's also a possible mid-channel support right between the 50% and 61.8% Fibs! Oh, and have I mentioned that Stochastic just touched the oversold region?

AUD/JPY: Daily

 

Early this week AUD/JPY sported a spinning top on the daily chart, which usually indicates indecision between currency bulls and bears. The bears might be getting a bargain though, since the spinning top closed around the 86.00 major psychological handle. Not only that, I'm also seeing a bearish divergence and overbought Stochastic signal in the works. A stop above Monday's candle might be good for the bears, while the Aussie bulls can wait for a break above 86.00 before going long.

EUR/CHF: Daily

 

Last one up for today is a possible bearish pennant on EUR/CHF's daily chart. The pair has been consolidating at the 1.2100 level after falling almost steadily from the 1.2250 area since late last year. If you've read your School of Pipsology, then you'll know that pennants usually signal a continuation of a trend. Be careful in shorting this one though, as the major 1.2000 handle is but a few pips away!

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.

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