Daily Chart Art – August 24, 2011

EUR/USD: Daily

EUR/USD Daily Chart

First up, we have a symmetrical triangle setup on EUR/USD‘s daily chart. We all know that a triangle like this one could break both ways, but right now it’s looking like the bears are in control with the 1.4450 resistance intact. Heck, even Stochastic is hanging around the overbought region. A break to the upside might take the pair all the way to 1.4700, but we can also see it drop to at least 1.4100 if it breaks to the downside.

EUR/JPY: 4-hour

EUR/JPY 4-hour Chart

Can’t get enough of breakout patterns? Try trading EUR/JPY‘s ascending triangle on the 4-hour chart! The 111.00 area is currently holding up as a good resistance level, but the higher lows are suggesting that the euro bulls are getting aggressive. A clean break above 111.00 might take the pair to 112.00 or even 113.00, while the euro bears can also wait for a break to 109.00

AUD/USD: 4-hour

AUD/USD 4-hour Chart

Last up for today is a simple potential resistance area on AUD/USD‘s 4-hour chart. While it’s good to wait a bit for more confirmation on the pair’s move, you can’t deny that a bearish divergence and an overbought Stochastic signal are making a strong case for the bears. If the bulls decide to take charge, then we might see the pair test 1.0600, but it could also drop to the 1.0350 support if 1.0500 holds.

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!