Daily Chart Art – December 1, 2011

USD/CAD: 4-hour

USD/CAD 4-hour Chart

Y’all ready for some retracement/reversal action? Check out the possible support level on USD/CAD! As we can see on the 4-hour chart, the pair has been hanging around the 1.0200 major psychological level in the last few candles. Not only that, it also looks like a bullish divergence and an oversold Stochastic signal are supporting a bullish trade! The dollar bulls can probably bag tons of pips if they aimed for the 1.0500 previous resistance area with a tight stop, but be careful! A break in the 1.0200 level could also send the pair all the way to parity!

EUR/GBP: 4-hour

EUR/GBP 4-hour Chart

While we’re on the subject of resistance levels, why don’t you check out the potential resistance on EUR/GBP? For some reason the pair has been reacting to the .8580 on the 4-hour time frame, which is currently lining up with a falling trendline resistance area. Stochastic is currently in the middle ground, but you could wait and see if it hits the overbought area once price hits .8580.

USD/CHF: Daily

USD/CHF Daily Chart

Last but definitely not the least, I got you a potential swing or position trade! Since the rising channel that I pointed out yesterday pretty much got busted yesterday, I’m now looking at a potential double top on USD/CHF‘s daily chart. Aside from encountering resistance at the .9300 area early this week, the pair is also sporting a bearish divergence and an overbought Stochastic signal. A stop above the previous high while aiming for the .8600 neckline would yield serious pips, but only if you stick to your trading plan!

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.