Daily Chart Art – August 19, 2011

EUR/CHF: Daily

EUR/CHF Daily Chart

All right, let’s kick off our Friday with a triple threat in EUR/CHF‘s daily chart! If you feel like shorting the euro today, then the bearish divergence and overbought Stochastic signal might hype you up. Oh, and have I mentioned that price is near the 61.8% Fib too? A strong downward move could drag the pair all the way to the 1.1000 support, but a break above the consolidation and the 61.8% Fib might also take the pair all the way to 1.2000.

EUR/JPY: 4-hour

EUR/JPY 4-hour Chart

Next up, we have a potential support-turned-resistance setup on EUR/JPY‘s 4-hour chart! Euro traders better keep an eye on the price action as it approaches 111.00, which was a previous war zone for the euro bulls and bears. What’s more, it’s also near the 50% Fib! If price rejects the level once again, we might see the pair drop back to 108.00 Of course, the bulls can still push the pair to 112.00 if the currency bulls manage to break above the support.

USD/CAD: 4-hour

USD/CAD 4-hour Chart

Last on the docket today is a channel on USD/CAD‘s 4-hour chart. Happy Pip’s trade this week might have played out nicely, but the pair looks like it’s about to hit resistance areas. Aside from a potential resistance at the top of the falling channel, the .9950 handle is also presenting a threat to the bulls. A break above the channel could take the pair to parity, while a bounce from the resistance could send the pair back to.9800.

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!