Daily Chart Art - April 13, 2012

Published on Friday April 13th, 2012 at 10:23AM by bigpippin

EUR/USD: Daily

Let's start the day with a descending triangle action on EUR/USD! The pair found support at 1.0350 early this week, and it looks like it's about to test the falling trendline on the daily chart. Remember, descending triangles usually break to the downside, but they can also break above its trendlines. Besides, Stochastic is currently on the bulls' side, so you gotta be extra careful if you're plannin' on shorting this pair!

GBP/USD: 4-hour

Who's up for some channel play today? Cable seems to have found resistance at the middle of its rising channel on the 4-hour chart, and Stochastic is also supporting a bearish bias. Will the mid-channel resistance turn into a support, or will we see the pound fall back down to channel bottom? A stop above the 1.0600 major handle might present a good reward-risk ratio if you aim for the 1.5850 area.

AUD/JPY: 4-hour

Check out the signals on this one! On AUD/JPY's 4-hour chart is a potential resistance at falling trendline and the 61.8% Fib level right near the 85.00 level. Not only that, Stochastic is also in the overbought region! A stop above the trendline and Fib levels is a good idea if you're shorting the pair, while the Aussie bulls can also wait for a break above the resistance levels if they're planning to buy the Aussie.

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.


Read more: http://www.babypips.com/blogs/pippinainteasy/daily-chart-art-april-13-2012.html#ixzz1rspMJDCC

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