Daily Chart Art – December 2, 2011

EUR/USD: 1-hour

EUR/USD 1-hour Chart

It appears a new range has formed on EUR/USD as it broke out of the old one. As you can see, the pair has consolidated into a 100-pip box with major resistance at the 1.3520 level and support at 1.3420. I don’t see the pair making any strong moves soon watch the 1.3520 and 1.3420 levels carefully for possible quick intraday range trades.

GBP/JPY: 1-hour

GBP/JPY 1-hour Chart

It looks like a nice rising channel is starting to form on GBP/JPY. With price slowly falling and the Stochastic pointing down, it seems that we’ll see the pair retest the lower boundary of the channel again. If you’re bullish on the pair, the bottom of the channel would be a good place to go long and ride uptrend.

AUD/USD: 1-hour

AUD/USD 1-hour Chart

I don’t want to leave the breakout traders hanging, so here’s a setup for them too! As you can see, price has consolidated into a tight bullish pennant. This means that an upside break is likely to happen and a strong move up will follow. If the bullish pennant breaks, we could see the pair climb to the 1.0400 major psychological level.

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.