Daily Chart Art – December 14, 2011

USD/CAD: 1-hour

USD/CAD 4-hour Chart

Whatup playas! If you’re the type who loves quick moves, here’s a potential breakout setup on the Loonie. After breaking past key resistance at 1.0280, the pair is now trading as high as 1.0350 and appears to be forming a bullish flag. Will the bulls remain in control? Watch out for a bullish marubozu candle that closes above 1.0350 as a sign that the Loonie is ready to soar to new highs.

EUR/JPY: Daily

EUR/JPY Daily Chart

It’s never good to end the year on a low note, but that’s what just happen on EUR/JPY! The bears have taken over this past week, as it has now dropped 200 pips! While Stochastic is now partyin’ in oversold territory, it has yet to crossover, suggesting that the bears may still have enough momentum to take EUR/JPY down to the 2011 low. Keep an eye out for the 100.85 price area, as this could be a make-or-break support level for EUR/JPY!

GBP/USD: 4-hour

GBP/USD 4-hour Chart

Lastly, let’s hop on over to Lady Cable. After ranging for the better part of two weeks, GBP/USD has dropped and is now approaching November’s low. Will the support level hold or will the bear blow right past it? I’d wait for more candlestick confirmation and for Stochastic to crossover out of oversold territory before establishing a position.

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.