Daily Chart Art – August 25, 2011

EUR/USD: 1-hour

EUR/USD 1-hour Chart

For those who like trading EUR/USD, you can make a play for a potential support at the 1.4400 handle. Not only is the major psychological level supported by a rising trendline, it’s also backed up by a bullish divergence and an oversold Stochastic signal. You can aim for 1.4500 if you’re feeling bullish on the pair, while the bears can wait for a break in support and aim for at least 1.4350, much like what Pipcrawler pointed out in his trade idea.

GBP/USD: 4-hour

GBP/USD 4-hour Chart

Heads up, Huck! This setup could be your trade this week! Since I know how Huck likes her majors, I’m pointing out GBP/USD‘s possible support at the 1.6300 handle. The level is lining up nicely with the 61.8% Fib on the 4-hour chart, and it also looks like Stochastic is in the oversold region. The bulls can aim for 1.6500 if the pound bulls start gaining momentum, but the currency bears can also wait for a break in support and push the pair all the way to 1.6100.

USD/CAD: 4-hour

USD/CAD 4-hour Chart

Somebody call Happy Pip because I’m seeing a tight comdoll setup right here! On USD/CAD‘s 4-hour we can see that a symmetrical triangle is forming. But with the way it tightened up in the past couple of candles, I say something’s gotta give soon! A straddle setup is usually effective for these setups, so an entry safely above .9900 could do the bulls good, while the bears can place their entries near .9850 or .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!